(a)
To accumulate and prudently manage the liquidity of its member credit unions
through interlending and investment services;

(b)
To act as an intermediary for member credit unions to the payment systems and
facilitate funds transfers between its member credit unions and other financial
institutions or their agents;

(c)
To obtain liquid funds from other credit union organizations, financial
intermediaries and other sources; and

(d)
To perform such other financial services that benefit its member credit unions
and that are authorized in writing by the Director of the Department of
Consumer and Business Services.

(4)
“Department” means the Department of Consumer and Business Services.

(5)
“Director” means the Director of the Department of Consumer and Business
Services.

(6)
“Equity” means a credit union’s reserves and undivided earnings.

(7)
“Home state” means the state in which the credit union is chartered.

(8)
“Host state” means the state in which a credit union conducts business, but
that is not the home state.

(9)
“Interstate credit union” means a credit union chartered under the provisions
of this chapter or under the authority of the laws of another state and
operating in this state and in one or more other states.

(10)
“Official” means any of the following:

(a)
An individual who is or was a director or officer of the credit union; or

(b)
An individual who is or was a member of a credit union’s credit committee or
supervisory committee.

723.006
“Credit union” defined. A credit union is a cooperative, nonprofit
association, incorporated under the laws of this state, for the purposes of
encouraging thrift among its members, creating a source of credit at a fair and
reasonable rate of interest and providing an opportunity for its members to use
and control their own money in order to improve their economic and social
condition. [1975 c.652 §3]

723.008
“Credit union” defined for ORS 723.136 and 723.464 to 723.498. As used in ORS
723.136 and 723.464 to 723.498, “credit union” means a credit union organized
under this chapter, an interstate credit union doing business in this state or
a federal credit union. [1999 c.185 §18; 2001 c.104 §286]

723.010 [Amended by 1955
c.550 §1; repealed by 1975 c.652 §88]

FORMATION

723.012
Organization procedure; articles of incorporation; bylaws; fee; rules. (1) Any seven or
more residents of this state or another appropriate jurisdiction, of legal age,
who have a common bond referred to in ORS 723.172 may organize a credit union
and become charter members thereof by complying with this section.

(2)
The incorporators shall execute the documents, including the articles of
incorporation, required by the Director of the Department of Consumer and
Business Services to apply for a credit union charter. The articles shall
state:

(a)
The name, which shall include the words “credit union” and which shall not be
the same as that of any other existing credit union in this state.

(b)
The location where the proposed credit union is to have its principal place of
business.

(c)
The par value, if any, of the shares of the credit union shall be defined in
the bylaws.

(d)
The full name, residence and post-office address of each of the incorporators.

(e)
The number of its directors, which shall not be less than five, and the names
of the incorporators who shall be its directors until the first annual meeting
of shareholders.

(f)
The number of members of the supervisory committee, which shall not be less
than three, and the name, residence and post-office address of the persons who
are to serve as members until the first meeting of directors.

(3)
The incorporators shall prepare and adopt bylaws for the general government of
the credit union, which shall be consistent with this chapter.

(4)
The incorporators shall forward the articles of incorporation and the bylaws to
the Director of the Department of Consumer and Business Services, together with
a filing fee in an amount that the director sets by rule. The director shall
issue a certificate of approval if the articles and the bylaws are in
conformity with this chapter and the director is satisfied that the ability of
the proposed credit union to operate successfully is favorable. The director
shall return a copy of the bylaws and the articles to the applicants or their
representatives, which shall be preserved in the permanent files of the credit
union. The application shall be acted upon by the director within 60 days.

(5)
The subscribers for a credit union charter shall not transact any business until
formal approval of the articles and bylaws has been received. [1975 c.652 §4;
1985 c.762 §85; 1987 c.286 §1; 1999 c.185 §2; 2007 c.343 §1]

723.014
Denial of certificate of approval. The Director of the Department of
Consumer and Business Services may not issue a certificate of approval under
ORS 723.012 if a person named in the articles of incorporation submitted for
approval:

(1)
Is insolvent or bankrupt;

(2)
Has engaged in dishonest, fraudulent or illegal practices or conduct in any
business or profession;

(3)
Has willfully or repeatedly violated or failed to comply with a provision of
the Oregon Bank Act, the Oregon Credit Union Act, the Oregon Consumer Finance
Act, the Oregon Securities Law, the Oregon Mortgage Lender Law or the
Pawnbrokers Act, or an administrative rule or order adopted under an Act
identified in this subsection;

(4)
Has been convicted of a crime, an essential element of which is fraud;

(5)
Is not qualified to conduct a credit union business on the basis of such
factors as training, experience and knowledge of the business;

(6)
Is permanently or temporarily enjoined by a court of competent jurisdiction
from engaging in or continuing any conduct or practice involving any aspect of
the credit union business;

(7)
Is the subject of an order of the director subjecting the person to a civil
penalty, or removing the person from an office in any entity regulated by the
director; or

(8)
Is the subject of an order that was issued by the regulatory authority of
another state, or of the federal government, with authority over banking
institutions, credit unions, consumer finance companies, savings associations,
securities firms or mortgage lenders, that was entered within the past five
years and that subjects the person to a civil penalty or removes the person
from an office in a state banking institution, a national bank, a state or
federal credit union, a state or federal savings association or a consumer
finance company, or from a position as a securities broker or dealer, a state
or federal investment adviser or a mortgage lender. [1977 c.135 §42; 1985 c.762
§86; 1987 c.373 §63a; 1987 c.650 §3; 1999 c.185 §3; 2009 c.541 §38; 2011 c.597 §291]

723.016
Form of articles and bylaws. In order to simplify the organization of
credit unions, the Director of the Department of Consumer and Business Services
shall cause to be prepared a form of articles of incorporation and a form of
bylaws, consistent with this chapter, which may be used by credit union
incorporators for their guidance. The articles of incorporation and bylaws
shall be available without charge to persons desiring to organize a credit
union. [1975 c.652 §5; 1985 c.762 §87]

723.020 [Repealed by 1975
c.652 §88]

723.022
Amendment of articles and bylaws; fee; rules. (1) The articles of incorporation
or the bylaws may be amended as provided in the bylaws. Amendments to the
articles of incorporation or bylaws shall be submitted to the Director of the
Department of Consumer and Business Services, together with a fee established
by rule of the director.

(2)
Amendments to articles of incorporation are effective upon approval in writing
by the director.

(3)
Amendments to bylaws submitted to the director in accordance with subsection
(1) of this section become effective 30 days after submission, unless the
director, within that time, notifies the submitter in writing that the director
either disapproves the amendments or requires submission of additional
information. If the director requires submission of additional information, the
amendments become effective 30 days after the date the information is
submitted, unless the director disapproves the amendments within that time. [1975
c.652 §6; 1991 c.635 §1; 1999 c.185 §4; 2017 c.35 §1]

723.026
Use of name exclusive; criminal penalty. With the exception of a credit union
organized under this chapter or of any other credit union act, or an
association of credit unions or a recognized chapter thereof, any person using
a name or title containing the words “credit union” or any derivation thereof
or representing themselves in their advertising or otherwise as conducting
business as a credit union shall be fined not more than $500 or imprisoned not
more than one year, or both, and may be permanently enjoined from using such
words in its name. [1975 c.652 §7; 1985 c.762 §88]

723.030 [Amended by 1973
c.414 §1; repealed by 1975 c.652 §88]

723.032
Places of business; mobile facilities. (1) A credit union may establish a place
of business or change the credit union’s place of business within this state 30
days after notifying the Director of the Department of Consumer and Business
Services in writing.

(2)
A credit union may establish one or more mobile facilities to engage in credit
union operations. Mobile facilities of a credit union that have the membership
described in ORS 723.172 (3)(a) may operate in this state or in other states.
Mobile facilities of a credit union that have the membership described in ORS
723.172 (3)(b) may operate only within the well-defined local community,
neighborhood or rural district that the credit union serves.

(3)
A credit union may establish additional places of business 30 days after
notifying the director in writing. The director may limit or restrict a credit
union’s ability to establish additional places of business upon written notice
to the credit union if the director determines that an addition would adversely
affect the credit union’s safety and soundness.

723.042
Interstate credit unions. (1) A credit union chartered under this chapter may
operate in another state unless prohibited by the laws of the other state.
Oregon is the home state for any credit union chartered under this chapter.

(2)
A credit union organized under the laws of another state may conduct business
as a credit union in this state with the approval of the Director of the
Department of Consumer and Business Services under the conditions described in
subsection (3) of this section. Oregon is the host state for any credit union
chartered under the laws of any other state and conducting business as a credit
union in this state. The state that charters the credit union is the home state
of the credit union.

(3)
The director may issue a branch certificate to a credit union chartered in
another state for the purposes of operating in this state if all of the
following conditions are met:

(a)
The credit union is organized under a credit union law substantially similar to
this chapter;

(b)
The credit union files an application that includes an agreement to comply with
all rules prescribed by the director;

(c)
The credit union agrees to submit an annual or other regular report of
examination from the supervising agency of the state in which it is chartered;

(d)
The credit union agrees to authorize the examination of its parent credit union
by the director and to pay the fee determined under ORS 723.114;

(e)
The field of membership of the credit union meets the definition of membership
as defined in ORS 723.172;

(f)
The credit union acknowledges that laws of this state relating to consumer
protection apply to transactions with residents of this state;

(g)
The credit union has account insurance comparable to that required for credit
unions incorporated under this chapter;

(h)
The credit union designates and maintains an agent for the service of process
in this state; and

(i)
The credit union submits quarterly financial reports as required by the
director.

(4)
The director may suspend or revoke the certificate of any credit union for
which Oregon is the host state for any violation of the provisions of this
chapter or rules or orders issued by the director. [1975 c.652 §10; 1981 c.412 §6;
1985 c.762 §89; 1987 c.373 §63b; 1999 c.185 §5]

723.102
Rulemaking authority.
In accordance with ORS chapter 183, the Director of the Department of Consumer
and Business Services may adopt rules for the purpose of carrying out this
chapter. [1975 c.652 §11; 1985 c.762 §90; 1991 c.331 §123; 1991 c.635 §4; 1999
c.185 §6]

723.104 [1977 c.135 §43;
repealed by 1985 c.762 §196]

723.106
Reports; late filing penalty; rules. (1) Credit unions shall report to the
Director of the Department of Consumer and Business Services annually by a date
established by the director on forms supplied and in the manner specified by
the director for that purpose. Additional reports may be required.

(2)
A civil penalty in an amount to be established by rule of the director, but not
to exceed $1,000 for each day a report is in arrears shall be levied against
the offending credit union unless it is excused for cause by the director. [1975
c.652 §12; 1991 c.635 §2; 1999 c.185 §7; 2011 c.597 §292]

723.110 [Amended by 1971
c.681 §3; repealed by 1975 c.652 §88]

723.112
Examinations.
(1) The Director of the Department of Consumer and Business Services shall
examine each credit union to determine its condition and whether the credit
union is complying with the laws of this state and such other matters as the
director may prescribe. For the purpose of conducting an examination or any
part thereof, the director may employ an independent consultant determined by
the director as qualified to conduct examinations. Except as provided in
subsection (3) of this section, examinations under this subsection must be
conducted not less frequently than 24 months apart.

(2)
For purposes of an examination under subsection (1) of this section:

(a)
Each credit union and all of its officers and agents shall be required to give
to representatives of the director full access to all of the credit union’s
books, papers, securities, records and other sources of information under their
control.

(b)
The director may subpoena witnesses, administer oaths, compel the giving of
testimony and require the submission of documents.

(3)
Instead of an examination under subsection (1) of this section, the director
may accept an examination or report made by an agency of the United States
Government under statutes of the United States.

(4)
A report of an examination under subsection (1) of this section shall be
forwarded to the executive officer of each credit union within 60 days after
completion. The report shall contain comments relative to the management of the
affairs of the credit union and also as to the general condition of its assets.
Within 45 days after the receipt of the report, the directors and supervisory
committee members shall meet to consider matters contained in the report and
shall report in writing to the director on the manner in which the credit union
is complying or will comply with the director’s recommendations. [1975 c.652 §13;
1977 c.135 §45; 1985 c.762 §91; 1987 c.373 §63c; 1999 c.185 §8]

723.114
Annual fees paid by credit unions; rules. (1) Each credit union shall pay to
the Director of the Department of Consumer and Business Services each year a
fee set in a schedule the director adopts by rule. The fee shall be paid by the
date set by the director in the rule establishing the schedule.

(2)
In addition to any fee collected under subsection (1) of this section, whenever
the director devotes any extra attention to the affairs of a credit union,
either upon determination by the director or upon request of the credit union,
the fee for the extra service shall be the actual cost of the extra service.

(3)
The director shall set or change the fee schedule described in subsection (1)
of this section after considering:

(a)
The amount of other moneys available for the director to use in performing the
director’s duties;

(b)
The costs the director will incur in performing the director’s duties in the
year in which the director will collect the fee; and

723.116
Records; rules.
A credit union shall maintain all books, records, accounting systems and
procedures in accordance with such rules as the Director of the Department of
Consumer and Business Services from time to time prescribes. In prescribing
such rules, the director shall consider the relative size of a credit union and
its reasonable capability of compliance. [1975 c.652 §14; 1991 c.635 §5; 1999
c.185 §9]

723.118
Disclosure of records of department; exemptions. (1) The Director
of the Department of Consumer and Business Services shall receive and file in
the Department of Consumer and Business Services all reports required under
this chapter.

(2)
Except as provided in subsection (3) of this section, the records of the
department pertaining to the administration of this chapter are available for
public inspection unless the director determines in a particular instance that
the credit union or the directors, members, officers or employees of the credit
union have an interest in keeping the records confidential that outweighs the
public interest in disclosing the records, or that the records are exempt from
disclosure under ORS 192.338, 192.345 and 192.355. A determination by the
director under this subsection is subject to review under ORS 192.311 to
192.478.

(3)
Except as provided in subsections (4) and (5) of this section, the following
records of the department are exempt from disclosure or production and shall be
treated as confidential as provided in ORS 705.137:

(a)
Examination reports and work papers, directives, orders and correspondence that
relate to examination reports.

(b)
Financial statements of and investigatory information concerning persons
subject to investigation by the director under ORS 723.014 or 723.132.

(c)
Proprietary information.

(d)
Reviews of financial statements submitted to the director.

(e)
The name of a member or borrower and the amount of shares, deposits or debts of
a member or borrower.

(f)
Correspondence, reports or other information obtained from or provided to the
Financial Crimes Enforcement Network established by order of the United States
Secretary of the Treasury.

(4)
Notwithstanding subsection (3) of this section and except as otherwise provided
in this subsection, the director may disclose a record that is specified in
this subsection and that pertains to a credit union that has been liquidated
under ORS 723.676 if the director determines in a particular instance that the
public interest in disclosing the record outweighs the interests of the credit
union or of the directors, members, officers or employees of the credit union
in keeping the record confidential. The director may not disclose a record or
portion of a record that contains proprietary information or information that
relates to an individual’s financial activities or affairs unless the director
concludes that the activities or affairs were a direct and substantial
contributing factor in the failure of the credit union. This subsection applies
to the following records of the department:

(a)
Examination reports and work papers, directives, orders and correspondence that
relate to examination reports.

(b)
Investigatory information concerning persons subject to investigation by the
director under ORS 723.014 or 723.132.

(c)
Reviews of financial statements.

(d)
Reports filed under ORS 723.106.

(5)
Notwithstanding ORS 40.270, an officer of the department may be examined
concerning records that are exempt from disclosure under subsection (2) or (3)
of this section. The records are subject to production if the court before
which a civil or criminal action is pending finds that the examination and
production is essential for establishing a claim or defense. In making a
finding under this subsection, if the court views the records, the court shall
do so in camera.

(6)
All records of the department pertaining to the condition of credit unions may
be furnished to:

(a)
The National Credit Union Administration.

(b)
The Federal Home Loan Bank of which the credit union is a member or to which
the credit union has applied for membership.

(c)
The State Treasurer if the credit union is a depository of public fund
deposits.

(d)
The respective credit union.

(7)
If the director is requested to disclose a record subject to this section and
the record contains both material that is exempt from disclosure under this
section or any other provision of law and material that is not exempt from
disclosure, the director shall separate the exempt and nonexempt material and
may disclose only the nonexempt material. [2005 c.95 §3; 2009 c.541 §40]

723.122
Bond or letter of credit; rules. (1) A credit union shall obtain and
maintain a fidelity bond or irrevocable letter of credit issued by an insured
institution, as defined in ORS 706.008, that includes coverage in accordance
with rules of the Director of the Department of Consumer and Business Services,
to protect the credit union against losses caused by occurrences such as fraud,
dishonesty, forgery, embezzlement, misappropriation, misapplication of duty and
all acts of agents, directors, officers, committee members, employees or
attorneys of the credit union. The minimum amount of the bond or letter of
credit is based on the amount of the credit union’s total assets in accordance
with the following table:

(2)
A fidelity bond or letter of credit must include a faithful performance clause
to cover the chief financial officer. The director must approve the fidelity
bond or letter of credit and may require additional amounts as the director
considers necessary.

723.126
Enforcement actions.
The Director of the Department of Consumer and Business Services may institute
any action or other proceeding that the director considers necessary for
enforcing any provision of this chapter or any rule, order or action adopted,
issued or taken by the director under this chapter. [1987 c.215 §10]

723.132
Order to remove officer, director or committee member. The Director of
the Department of Consumer and Business Services by order may direct a credit
union to remove any officer, director or committee member of the credit union
for any reason stated in ORS 723.014. [1987 c.650 §6]

723.134
Receipt of deposits from person not a member of credit union; secondary capital
accounts; rules.
(1) The Director of the Department of Consumer and Business Services by rule
may establish guidelines for determining whether a credit union predominantly
serves low-income members. If the director, using the guidelines established in
accordance with this subsection, determines that a credit union predominantly
serves low-income members, the credit union may:

(a)
Receive deposits from a person that is not a member of the credit union and
allow the person to hold shares in the credit union; and

(b)
Issue secondary capital accounts that are subject to any terms and conditions
that the Director of the Department of Consumer and Business Services may
prescribe by rule.

(2)
For purposes of this section, “secondary capital account” means a deposit or
share account that is not insured by the National Credit Union Share Insurance
Fund, or another primary share insurer approved by the Director of the
Department of Consumer and Business Services, and that is subordinate to all
other claims against the credit union, including claims of creditors, owners of
share accounts and the National Credit Union Share Insurance Fund or another
insurer approved by the Director of the Department of Consumer and Business
Services. Secondary capital accounts that the credit union issues in accordance
with this section are equity as defined in ORS 723.001 for the purposes of ORS
723.631 and for any other purpose.

(3)
The powers set forth in this section are in addition to the powers the credit
union has under ORS 723.152. [2007 c.343 §5]

723.135 [1973 c.148 §2;
repealed by 1975 c.652 §88]

723.136
Agreements with other credit union supervisory agencies and Financial Crimes
Enforcement Network; contracts for use of credit union examiners; joint
examination or enforcement; fees. (1) The Director of the Department of
Consumer and Business Services may enter into cooperative, coordinating and
information sharing agreements with another credit union supervisory agency,
with the Financial Crimes Enforcement Network established by order of the
United States Secretary of the Treasury or with an organization affiliated with
or representing one or more credit union supervisory agencies. The director may
enter into the agreements in order to examine or supervise a non-Oregon
institution branch or other office or place of business located in this state
or to examine or supervise a branch of a credit union that is chartered in
Oregon and is located in another state. The director may accept an agency
report made pursuant to an agreement entered into under this section in lieu of
the director’s own examination or investigation. The agreement may resolve
conflicts of laws and specify the manner in which examination, supervision and
application processes will be coordinated between this state and the home state
of the non-Oregon institution. The director may also share information with the
Federal Home Loan Bank and the directors of the Federal Home Loan Bank.

(2)
The director may enter into a contract with a credit union supervisory agency
that has concurrent jurisdiction over a credit union operating a branch or
other office or place of business in this state to engage the services of the
agency’s examiners at a reasonable rate of compensation or to provide the
services of the director’s examiners to the agency at a reasonable rate of
compensation. The contract is exempt from competitive bidding requirements
under the provisions of ORS chapters 279A and 279B. The contract may resolve
conflicts of laws and specify the manner in which examination, supervision and
application processes will be coordinated between this state and the home state
of the non-Oregon institution.

(3)
The director may enter into joint examinations or joint enforcement actions
with other credit union supervisory agencies that have concurrent jurisdiction
over a non-Oregon institution branch or other office or place of business
located in this state or a branch of a credit union that is chartered in Oregon
and is located in another state. Conducting a joint examination or enforcement
action under this subsection does not prevent the director from conducting an
independent examination or enforcement action at any time if the director
determines that carrying out the director’s responsibilities or ensuring
compliance with the laws of this state requires the independent action. With
respect to examinations or enforcement actions that involve non-Oregon
institutions, the director may recognize:

(a)
The exclusive authority of the credit union supervisory agency of the home
state of the non-Oregon institution over corporate governance matters; and

(b)
The primary responsibility of the credit union supervisory agency of the home
state of the non-Oregon institution over safety and soundness matters.

(4)
The director may share fees collected from non-Oregon institutions under the
provisions of this chapter with another credit union supervisory agency or an
organization affiliated with or representing one or more credit union
supervisory agencies in accordance with agreements between the agency or
organization and the director. [1999 c.185 §39; 2003 c.794 §324; 2009 c.541 §41]

POWERS
OF CREDIT UNIONS

723.152
General powers; rules. In addition to the powers conferred by the general
corporation law a credit union may, subject to the restrictions and limitations
contained in this chapter and the credit union’s bylaws:

(1)
Make contracts.

(2)
Sue and be sued.

(3)
Adopt, use and alter a common seal.

(4)
Acquire, lease, hold and dispose of property, either in whole or in part,
necessary or incidental to the credit union’s operations.

(5)
At the discretion of the board of directors, require any person admitted to
membership to pay an entrance fee or annual membership fee, or both.

(6)
Receive savings from members of the credit union in the form of various classes
of shares, deposits or deposit certificates, deposit accounts or
special-purpose thrift accounts.

(7)
Receive from members of the credit union or from another credit union deposits
or deposit certificates, deposit accounts or various classes of shares payable
on nonnegotiable request.

(8)
Lend the credit union’s funds to members of the credit union and to other
credit unions as provided in this chapter.

(9)
Acquire and lease personal property at the request of a member of the credit
union who wishes to lease the property on terms requiring payment, during the
term of the lease, of rents that exceed the total expenditures made by the
credit union for the acquisition, ownership, financing and protection of the
property. Rents may include residual value payments that are the obligation of
a responsible third party.

(10)
Borrow from any source in accordance with policy established by the board of
directors and issue debentures pursuant to a plan approved by the Director of
the Department of Consumer and Business Services. The debentures shall be
subordinate to the shares and deposits of the credit union.

(11)
Discount and sell any eligible obligations, subject to rules adopted by the
Director of the Department of Consumer and Business Services.

(12)
Sell all or substantially all of the credit union’s assets or purchase all or
substantially all of the assets of another credit union, subject to the
approval of the Director of the Department of Consumer and Business Services.

(15)
Assess charges to a member of the credit union in accordance with the credit
union’s bylaws for the member’s failure to meet the member’s obligations to the
credit union promptly.

(16)
Hold membership in other credit unions organized under this chapter or other
state or federal laws, and in other associations and organizations composed of
credit unions.

(17)
Declare dividends, pay interest on deposit and deposit certificate accounts and
pay interest refunds to borrowers as provided in this chapter.

(18)
Offer products and services reasonably related to the purposes of a credit union
as set forth in ORS 723.006.

(19)
Receive deposits from the federal government or this state, or any agency or
political subdivision thereof.

(20)
Make donations or contributions to any civic, charitable, political or
community organization as authorized by the board of directors.

(21)
Act as a custodian of qualified pension funds of members of the credit union if
permitted by federal law.

(22)
Purchase or make available insurance for the credit union’s directors,
officers, agents, employees and members.

(23)
Allow members of the credit union to use share accounts, deposit accounts or
deposit certificate accounts as share draft accounts as provided in ORS
723.434.

(24)
Provide digital signature verification or other electronic authentication services
to members of the credit union.

(25)
Act as trustee or custodian for members of the credit union under any written
trust instrument or custodial agreement in connection with a tax-advantaged
savings plan authorized under the Internal Revenue Code, including but not
limited to individual retirement, deferred compensation, education savings and
health savings accounts, provided that the trust instrument or custodial
agreement requires all funds subject to the instrument or agreement to be
invested exclusively in share or deposit accounts in the credit union. The
State of Oregon, or the applicable instrumentality or municipality, is
considered to be a member of the credit union with respect to such deposits,
except that the state or other instrumentality or municipality is not entitled
to vote, hold office or otherwise participate in the management or operation of
the credit union.

(26)
Indemnify the directors, officers, employees and committee members or other
volunteers of the credit union in accordance with the provisions of the credit
union’s articles, bylaws and the indemnification provisions of ORS chapter 60.

(27)
Sell negotiable checks, including traveler’s checks, money orders and other
money transfer instruments, including domestic and international electronic
funds transfers, to persons eligible for credit union membership under ORS
723.172, whether or not such persons are members of the credit union.

(28)
For a fee, cash checks and money orders and send or receive domestic and
international electronic funds transfers for persons eligible for credit union
membership under ORS 723.172, whether or not such persons are members of the
credit union. The fee a credit union may charge for cashing checks or money
orders in accordance with this subsection may not exceed the following amounts,
as appropriate:

(a)
For a check or money order issued by the federal government or an agency of the
federal government, by this state or an agency of this state, by any other
state or political subdivision thereof or by the government of the municipality
in which a person is cashing the check or money order, or for a check that is a
payroll check drawn against an account held in a financial institution in this
state:

(A)
$5 or two percent of the face value of the check or money order, whichever is
greater, if the person cashing the check or money order provides valid and
current government-issued photo identification; or

(B)
$5 or 2-1/2 percent of the face value of the check or money order, whichever is
greater, if the person cashing the check or money order does not provide valid
and current government-issued photo identification.

(b)
For a check or money order not described in paragraph (a) of this subsection:

(A)
$5 or three percent of the face value of the check or money order, whichever is
greater, if the person cashing the check or money order provides valid and
current government-issued photo identification; or

(B)
$5 or 3-1/2 percent of the face value of the check or money order, whichever is
greater, if the person cashing the check or money order does not provide valid
and current government-issued photo identification.

723.156
Exercise of powers of federal credit union. (1) Notwithstanding any other
provision of law, in addition to the powers and authorities provided under the
laws of this state, a credit union may exercise any of the powers that were
available to a federal credit union as of January 1, 2017. At least 45 days
before exercising a power under this subsection, a credit union shall provide
to the Director of the Department of Consumer and Business Services written
notice of the credit union’s intent to exercise the power. The notice must
describe the power and specify the statutory or regulatory authority or other
legal basis for the federal credit union power the credit union intends to
exercise.

(2)
Notwithstanding any other provision of law, in addition to the powers and
authorities provided under the laws of this state, a credit union may, after
obtaining approval from the director and subject to any limitations the
director prescribes, exercise any of the powers conferred after January 1,
2017, upon a federal credit union that does business in this state and that is
subject to the regulations of the administrator of the National Credit Union
Administration or the successor or successors of the administrator, or any of
the powers conferred on a credit union that is chartered under the laws of
another state and does business in this state, if the director finds that exercising
the powers:

(a)
Serves the public and members’ convenience and advantage; and

(b)
Equalizes and maintains the quality of competition among credit unions
chartered under the laws of this state, of another state and under federal law.
[1975 c.652 §17; 1991 c.635 §6; 1997 c.832 §3; 2013 c.480 §2; 2017 c.35 §4]

(b)
“Well-defined local community, neighborhood or rural district” means one or
more adjacent precincts, districts, cities, counties or other boundaries
defined by the state or a unit of local government or by a state or local
government agency.

(2)
The membership of a credit union is limited to and consists of the
incorporators to the articles of incorporation and other persons within the
common bond set forth in the bylaws that have been duly admitted as members,
have paid any required entrance fee or membership fee and have complied with
any other requirements that the articles of incorporation or bylaws specify.

(3)
Credit union membership may include:

(a)
One or more groups, each having a common bond of occupation or association; or

(b)
Persons who live or work in, or organizations located within, a well-defined
local community, neighborhood or rural district.

(4)
Credit union membership may also include any of the immediate family of a
person who is eligible for membership in the credit union under subsection (3)
of this section. For the purposes of this subsection, “immediate family”
includes an eligible member’s foster parent or legally appointed guardian.

(5)
In determining whether adjacent precincts, districts, cities, counties or other
boundaries defined by the state or a unit of local government or by any state
or local government agency form a well-defined local community, neighborhood or
rural district, the Director of the Department of Consumer and Business
Services shall consider:

(a)
Interactions or shared interests that tie the precincts, districts, cities,
counties or other boundaries together;

(b)
The size of the population of the proposed well-defined local community,
neighborhood or rural district;

(c)
The size of the geographic area of the proposed well-defined local community,
neighborhood or rural district; and

(d)
Other criteria that the director considers relevant in accordance with the
purposes of this chapter.

(6)(a)
A credit union may not add a group with a separate bond of occupation or
association to the credit union’s membership unless, at the time the credit
union adds the group to the credit union’s membership, the group does not
contain more than 3,000 members.

(b)
The limitation in paragraph (a) of this subsection does not apply to:

(A)
A group the director determines could not feasibly or reasonably establish a
new credit union because the group lacks volunteer resources, financial
resources or other factors the director considers important for successfully
forming a new credit union; or

(B)
A group transferred to the credit union in connection with a merger,
consolidation or transfer the director approved, or in connection with the
liquidation of another credit union.

(7)
Notwithstanding subsection (3) of this section, a credit union, the membership
of which includes one or more groups that have a common bond of occupation or
association, may add to the credit union’s membership persons who live or work
in, or organizations located within, a well-defined local community,
neighborhood or rural district if:

(a)
The director determines that the well-defined local community, neighborhood or
rural district is underserved by other depository institutions, as defined in
section 19(b)(1)(A) of the Federal Reserve Act, 12 U.S.C. 461(b)(1)(A), based
on data of the National Credit Union Administration and the federal banking
agencies, as defined in section 3 of the Federal Deposit Insurance Act, 12
U.S.C. 1813; and

(b)
The credit union establishes and maintains an office or facility in the
well-defined local community, neighborhood or rural district at which credit
union services are available.

(8)
In reviewing a proposed amendment to a credit union’s bylaws that would include
an additional group within the credit union’s membership, the director shall
consider:

(a)
Whether, within the preceding year, the credit union has engaged in any unsafe
or unsound practice that is material;

(b)
Whether the credit union has the capitalization, administrative capability and
financial resources to serve the additional group; and

723.176
Business and nonbusiness organizations as members. Business and
nonbusiness organizations composed of individuals who are eligible for
membership, or whose employees are eligible for membership, may be admitted to
membership in the same manner and under the same conditions as individuals. [1975
c.652 §19; 1987 c.286 §3; 1999 c.185 §56; 2001 c.308 §3]

723.182
Other credit unions as members. Any credit union organized under the laws
of this state may permit membership of any other credit union organized under
the laws of this state, of any other state or of the United States. [1975 c.652
§20]

723.184
State deemed member with respect to deferred compensation deposits;
restrictions on membership. Notwithstanding any other provision of this chapter,
a credit union may receive deposits from the State of Oregon of moneys
belonging to the Deferred Compensation Fund established under ORS 243.411. With
respect to such deposits, the State of Oregon shall be deemed to be a member of
the credit union, except that the state shall not be entitled to vote, hold
office or otherwise participate in the management or operation of the credit
union. [1977 c.721 §17; 1997 c.179 §31]

723.186
Members who leave field of membership. A member who leaves the credit union’s
field of membership may be permitted to retain the member’s membership in the
credit union. [1975 c.652 §21; 2009 c.234 §4]

723.192
Individual liability.
The members of the credit union shall not be personally or individually liable
for the payment of the debts of the credit union. [1975 c.652 §22; 1981 c.903 §10]

723.196
Meeting of members; mail or electronic ballots. (1) The annual
meeting and any special meetings of the members of the credit union shall be
held at the time and place and in the manner indicated by the bylaws.

(2)
At meetings described in subsection (1) of this section, a member has one vote,
irrespective of the amount of that member’s shareholdings. A member may not
vote by proxy, but a member may vote by mail or electronic ballot if allowed by
the bylaws of the credit union. The board of directors shall establish
procedures to safeguard the confidentiality and integrity of the voting process.
As used in this subsection, “electronic” has the meaning given that term in ORS
84.004.

(3)
The board may establish a minimum age as a qualification of eligibility to vote
at meetings of the members. [1975 c.652 §23; 1999 c.185 §12; 2005 c.95 §5]

723.202
Withdrawal and expulsion of members; request for reinstatement. (1) Subject to
subsection (2) of this section, a credit union may expel any member of the
credit union who:

(a)
Has not carried out the member’s engagements with the credit union;

(b)
Creates an undue risk of loss to the credit union, as determined in accordance
with the bylaws of the credit union;

(c)
Has been convicted of a criminal offense;

(d)
Fails to comply with the provisions of this chapter or of the credit union’s
articles, bylaws or policies;

(e)
Threatens, harasses or abuses any member, employee, board or committee member
or agent of the credit union; or

(f)
Habitually neglects to pay the member’s debts or becomes insolvent or bankrupt.

(2)
A credit union that expels a member shall inform the member in writing of the
reasons for the expulsion and give the expelled member reasonable opportunity
to request the credit union’s board of directors to reinstate the member.
Members of a credit union who withdraw or are expelled shall not be relieved of
any liability to the credit union. The amounts paid in on shares or deposited
by such members, together with any dividends credited to their shares and any
interest which has accrued on their deposits, shall be repaid to them in the
order of their withdrawal or expulsion, as funds become available therefor, but
the credit union may deduct from such payments any sums due to the credit union
from such members. [1975 c.652 §24; 1985 c.762 §94; 1999 c.185 §13; 2007 c.343 §6;
2017 c.35 §2]

723.252
Election of directors and appointment of credit committee and credit manager. (1) A credit
union must be directed by a board that consists of an odd number of directors,
at least five in number, who are elected by and from the credit union’s members
in the manner provided in the credit union’s bylaws. Members of the board hold
office for such terms as the bylaws provide.

(2)
The board of directors shall appoint a supervisory committee of not less than
three members at the organizational meeting and within 60 days following each
annual meeting of the members for such terms as the bylaws provide.

(3)
The board of directors shall appoint a credit committee that consists of an odd
number not less than three for such terms as the bylaws provide. The members of
the credit union may instead elect the members of the credit committee from
among the membership of the credit union at the annual members’ meeting. In
lieu of the credit committee, the board of directors may appoint a credit
manager.

(4)
The board of directors may appoint temporary or successor directors or temporary
or successor credit committee or supervisory committee members to serve in
place of absent directors or committee members. [1975 c.652 §25; 1997 c.832 §4;
2009 c.234 §5]

723.256
Record of board and committee members. Within such time as the Director of the
Department of Consumer and Business Services may establish, a record of the
names and addresses of the members of the board, committees and all officers of
the credit union shall be filed with the director on forms provided and in the
manner prescribed by the director. [1975 c.652 §26; 1991 c.635 §7; 1999 c.185 §14]

723.260 [Amended by 1959
c.106 §10; repealed by 1975 c.652 §88]

723.262
Vacancies.
(1) Subject to subsection (2) of this section, the board of directors may fill
any vacancies occurring in the board until successors elected at the next
annual meeting have qualified.

(2)
If a vacancy occurring in the board reduces the number of directors to five or
fewer, the board shall fill the vacancy until a successor elected at the next
annual meeting has qualified.

(3)
The board shall also fill vacancies in the credit and supervisory committees or
in the office of credit manager. [1975 c.652 §27; 2005 c.95 §6]

723.266
Compensation of officials. A credit union may pay to the credit union’s directors
and supervisory committee members reasonable compensation for service as
directors and supervisory committee members and may reimburse directors,
supervisory committee members and other committee members while the directors
or committee members are on official business for necessary expenses incidental
to performing the official business. [1975 c.652 §28; 1991 c.635 §8; 2015 c.458
§3]

723.270 [Repealed by 1975
c.652 §88]

723.272
Conflicts of interest. No director, committee member, officer, agent or
employee of the credit union shall in any manner, directly or indirectly,
participate in the deliberation upon or the determination of any question
affecting pecuniary interest or the pecuniary interest of any corporation,
partnership or association (other than the credit union) in which the director,
committee member, officer, agent or employee is dir ectly or indirectly
interested. [1975 c.652 §29]

723.275 [1959 c.106 §5;
repealed by 1975 c.652 §88]

723.276
Executive officers.
(1) At the organizational meeting of the board of directors and within 60 days
after each annual meeting of the members, the directors shall elect an
executive officer, whom the directors may designate as chairperson of the board
or president, a vice chairperson of the board or one or more vice presidents, a
treasurer and a secretary. The treasurer and the secretary may be the same
individual. The persons that the board of directors elects are the executive
officers of the corporation.

(2)
The terms of the officers are one year, or until the successors of the officers
are chosen and have duly qualified.

723.282
Authority of directors. The board of directors shall have the general
direction of the business affairs, funds and records of the credit union. [1975
c.652 §31]

723.286
Executive committee.
From the persons elected to the board, the board may appoint an executive
committee of not less than three directors who may be authorized to act for the
board in all respects, subject to such conditions and limitations as are
prescribed by the board. [1975 c.652 §32]

723.290 [Amended by 1959
c.106 §12; repealed by 1975 c.652 §88]

723.292
Meetings of directors; rules. The board of directors of a credit union
shall hold regular meetings. The Director of the Department of Consumer and
Business Services may specify by rule the minimum frequency of meetings of the
board of directors. [1975 c.652 §33; 1999 c.185 §15; 2009 c.234 §7; 2011 c.327 §1;
2017 c.35 §3]

723.296
Duties of directors; delegation of duties. (1) The board of directors shall
manage the business and affairs of the credit union. The duties of the board
include, but are not limited to, the duties listed in this section. The board
may not delegate duties listed in subsection (2) of this section. The board may
delegate the duties listed in subsection (3) of this section to a committee,
officer or employee of the credit union, who shall provide appropriate
information to the board regarding the exercise of the duties.

(2)
The board shall:

(a)
Establish the requirements for membership in the credit union, including the
par value, if any, of a share;

(b)
Authorize interest refunds, if any, to members from income earned and received
in proportion to the interest the members pay on classes of loans and under
conditions that the board prescribes;

(c)
Authorize the employment of persons necessary to carry on the business of the
credit union and fix the compensation of the manager or chief executive
officer;

(d)
Authorize the conveyance of property;

(e)
Suspend members of the credit or supervisory committee for failing to perform
the members’ duties;

(f)
Appoint any special committees the board considers necessary;

(g)
Limit the number of shares and the amount of deposits that a member may own and
ensure that limitations adopted under this subsection apply alike to all
members; and

(3)
In addition to the duties listed in subsection (2) of this section, and subject
to subsection (1) of this section, the board shall:

(a)
Act upon applications for membership. If this duty is delegated, a record of an
approval or denial of membership must be made available to the board. A person
to whom a committee, officer or employee of the credit union denies membership
may appeal the denial to the board.

(b)
Purchase a blanket fidelity bond, in accordance with ORS 723.122.

(c)
Determine from time to time the interest rate or rates that shall be charged on
loans.

(d)
Declare dividends on shares and share certificates in accordance with the
provisions of the bylaws and determine the prospective dividend rate to be paid
on shares and share certificates and the interest rate or rates that will be
paid on deposits and deposit certificates.

(e)
Designate a depository or depositories for the funds of the credit union.

723.302
Duties of credit committee. The credit committee shall have the general
supervision of all loans to members. [1975 c.652 §35]

723.306
Meetings of credit committee. The credit committee shall meet as often
as the business of the credit union requires and not less frequently than once
a month to consider applications for loans. No loan shall be made unless it is
approved by a majority of the committee who are present at the meeting at which
the application is considered. [1975 c.652 §36]

723.312
Loan officers.
(1) The credit committee may appoint one or more loan officers and delegate the
power to approve or disapprove loans, subject to such limitations or conditions
as the credit committee prescribes.

(2)
Loan applications not approved by a loan officer may be reviewed by the credit
committee. [1975 c.652 §37; 1987 c.286 §6]

723.316
Chief credit officer.
The board of directors of a credit union may appoint a chief credit officer in
lieu of a credit committee to approve or disapprove loans under conditions that
the board prescribes. If the board appoints a chief credit officer in lieu of a
credit committee, the provisions of ORS 723.302 to 723.312 do not apply and the
credit union may not make a loan unless the chief credit officer approves the
loan, except that the chief credit officer may appoint one or more loan
officers with the power to approve loans subject to limitations or conditions
that the chief credit officer prescribes. [1975 c.652 §38; 2011 c.327 §2]

723.322
Duties of supervisory committee; verification of member accounts; rules. (1) The
supervisory committee shall make or cause to be made a comprehensive annual
audit of the books and affairs of the credit union and shall submit a report of
the audit to the board of directors and the Director of the Department of
Consumer and Business Services and a summary of that report to the members at
the next annual meeting of the credit union. It shall make or cause to be made
such supplementary audits or examinations as it deems necessary or as are
required by the director or by the board of directors, and submit reports of
these supplementary audits to the board of directors.

(2)
The supervisory committee shall cause the accounts of the members to be
verified with the records of the credit union from time to time in accordance
with subsection (3) of this section. This verification shall be done not less
frequently than every two years.

(3)
Verification of members’ accounts shall be made using either of the following
methods:

(a)
A controlled verification of 100 percent of members’ share and loan accounts;
or

(b)
A controlled random statistical sampling method in accordance with rules that
the director may prescribe.

(4)
Records of accounts verified shall be maintained and retained until the next
verification of members’ accounts is completed. [1975 c.652 §39; 1991 c.635 §10]

723.326
Suspension and removal of officials; restrictions on service as director. (1) The
supervisory committee by a unanimous vote may suspend any member of the board
until the next members’ meeting. The next members’ meeting must be held not
less than 14 nor more than 45 days after the suspension. At the meeting the
members shall decide whether to remove the suspended officer or board member.

(2)
The board may remove any member of the supervisory committee for failing to
perform duties prescribed in this chapter or in the credit union’s articles of
incorporation, bylaws or policies.

(3)
A person may not serve as a director if the person has defaulted on payment of
a voluntary obligation to the credit union or has otherwise caused the credit
union to incur a financial loss. [1975 c.652 §40; 1985 c.762 §96; 1999 c.185 §16;
2005 c.95 §8; 2013 c.480 §5]

723.332 [1975 c.652 §41;
1985 c.762 §97; repealed by 2013 c.480 §8]

723.338
Duty to notify law enforcement officers of violations of Oregon Credit Union
Act; investigations; costs. (1) If a director, officer or committee member of a
credit union has reason to believe that a person has violated any provision of
the Oregon Credit Union Act for which criminal prosecution is provided, such
official shall give the information relative to the violation to the
appropriate federal, state or local law enforcement officer having jurisdiction
of the violation, and to the Director of the Department of Consumer and
Business Services.

(2)
If the matter is referred to the Attorney General or to a district attorney,
such official promptly shall investigate the violation and institute such
action against the person as the information and investigation requires or
justifies. The cost of the investigation and action shall be paid by the county
or state in the manner in which other criminal actions are paid. [1979 c.88 §33]

723.406
Dividends.
(1) At such intervals and for such periods as the board of directors may
authorize, and after provision for the required reserves, the board of
directors may declare dividends to be paid on shares or share certificates.
Dividends may be paid at various rates, or not paid at all, with due regard to
the conditions that pertain to each class of share.

(2)
Subject to the approval of the board of directors, accounts closed between
dividend periods may be credited with dividends at the rate set by the board of
directors. [1975 c.652 §43; 1985 c.206 §1; 1985 c.801 §5; 1995 c.319 §2; 2001
c.308 §4]

723.412
Deposit and deposit certificate accounts; interest; priority. (1) A credit
union may receive savings in deposit and deposit certificate accounts from its
members and other credit unions, subject to such conditions as the board of
directors establishes.

(2)
Deposit and deposit certificate accounts differ from shares and share
certificates in that a predeclared rate of return, as determined from time to
time at such rates and upon such classes of deposit and deposit certificate
accounts as are established by the board of directors, shall be established on
deposit accounts.

(3)
Interest may be paid on deposits and deposit certificates at various rates with
due regard to the conditions that pertain to each type of account such as
minimum balance, notice and time requirements.

(4)
In the event of liquidation of a credit union, shares and share certificates
shall be subordinate to the claims of depositors and other creditors. [1975
c.652 §44; 1985 c.801 §8]

723.416 [1975 c.652 §45;
repealed by 1999 c.185 §58]

723.420 [Repealed by 1959
c.106 §23]

723.422 [1975 c.652 §46;
repealed by 1999 c.185 §58]

723.426
Joint accounts.
A member may designate any person or persons to hold shares, deposits and
thrift club accounts with the member in joint tenancy, with or without the
right of survivorship, but no joint tenant, unless a member in the member’s own
right, shall be permitted to vote, obtain loans, or hold office or be required
to pay an entrance or membership fee. [1975 c.652 §47; 1977 c.555 §16; 1991
c.635 §11]

723.430 [Repealed by 1975
c.652 §88]

723.432
Trust accounts.
Shares may be issued and deposits may be held in the name of a member in trust
for a beneficiary, including a minor, but no beneficiary, unless a member in
the beneficiary’s own right, shall be permitted to vote, obtain loans, hold
office or be required to pay an entrance or membership fee. [1975 c.652 §48;
1977 c.555 §17]

723.434
Share draft accounts.
(1) A credit union may allow a member holding a regular share or deposit
account to use that account as a share draft account as provided in this
section, subject to conditions established by the board of directors.

(2)
As used in this section:

(a)
“Share draft” means a negotiable or nonnegotiable draft used to withdraw shares
or deposits from a share draft account.

(b)
“Share draft account” means any regular share account or deposit account from
which the credit union allows shares or deposits to be withdrawn by means of a
share draft or other order.

723.450
Payment on shares and deposits; restriction on class of shares. Shares, share
certificates, deposits and deposit certificates may be withdrawn for payment to
the account holder or to third parties in accordance with the manner and
procedures established by the board of directors. The board of directors may
restrict one class of shares so that a share in the class may not be redeemed,
withdrawn or transferred except upon termination of membership in the credit
union. [1985 c.801 §7]

723.452 [1981 c.298 §1;
renumbered 723.463]

723.454
Liens.
The credit union shall have a lien on all funds of a member or joint owner on
deposit with the credit union in any individual or joint account held in any
capacity, for any obligation of the member or joint owner to the credit union. [Formerly
723.436; 1991 c.635 §12; 1999 c.185 §57]

723.457 [Formerly
723.442; 1991 c.635 §13; repealed by 2001 c.308 §5]

723.460
Reduction in shares.
(1) Whenever the losses of any credit union, resulting from a depreciation in
value of its loans or investments or otherwise, exceed its undivided earnings
and reserve fund so that the estimated value of its assets is less than the
total amount due the shareholders, the credit union may by a majority vote of
the entire membership order a reduction in the shares of each of its
shareholders to divide the loss proportionately among the members.

(2)
If the credit union thereafter realizes from such assets a greater amount than
was fixed by the order of reduction, such excess shall be divided
proportionately among the shareholders whose assets were reduced, but only to
the extent of such reduction. [Formerly 723.446]

723.462 [1999 c.185 §19;
repealed by 2005 c.95 §12]

723.463 [Formerly
723.452; 1987 c.658 §4; repealed by 1997 c.832 §10]

723.464
Deposits made in name of minor. Any deposit to a credit union made to an
account in the name of a minor shall be held for the exclusive right and
benefit of the minor and free from the control or lien of all other persons,
except other parties to the account and creditors, and shall be paid, in
accordance with the terms of the account, together with any interest thereon,
to or upon the order of the minor. [1999 c.185 §20]

723.466
Disposition of deposit on death of depositor. (1) On the death of a member of a
credit union, if the deposit to the credit of the deceased member is $25,000 or
less, the credit union may, upon receipt of an affidavit from a person claiming
the deposit as provided in subsection (3) of this section, or a declaration from
the Department of Human Services or the Oregon Health Authority as provided in
subsection (4) of this section, pay the moneys on deposit:

(a)
To the surviving spouse on demand of the surviving spouse at any time after the
death of the member;

(b)
If there is no surviving spouse, to the Oregon Health Authority or the
Department of Human Services, on demand of the authority or the department no
less than 46 days and no more than 75 days after the death of the member when
there is a preferred claim arising under ORS 411.708, 411.795 or 416.350;

(c)
If there is no surviving spouse and no authority or department claim, to the
member’s surviving children 18 years of age or older;

(d)
If there is no surviving spouse, authority claim, department claim or surviving
child 18 years of age or older, to the member’s surviving parents; or

(e)
If there is no surviving spouse, authority claim, department claim, surviving
child 18 years of age or older or surviving parent, to the member’s surviving
brothers and sisters 18 years of age or older.

(2)(a)
A credit union may not pay moneys on deposit under subsection (1)(c), (d) or
(e) of this section earlier than 46 days after the death of the depositor.

(b)
A credit union may not pay moneys on deposit under subsection (1)(c), (d) or
(e) of this section earlier than 76 days after the death of the depositor
unless the financial institution obtains prior verbal or written authorization
from the Oregon Health Authority or its designated representative and the
Department of Human Services or its designated representative.

(3)
An affidavit or declaration submitted under this section must:

(a)
State where and when the member died;

(b)
State that the total deposits of the deceased member in all financial
institutions in this state do not exceed $25,000;

(c)
Show the relationship of the affiant or declarant to the deceased member; and

(d)
Embody a promise to pay the expenses of last sickness, funeral expenses and
just debts of the deceased member out of the deposit, to the full extent of the
deposit if necessary, in the order of priority prescribed by ORS 115.125, and
to distribute any remaining moneys to the persons who are entitled to those
moneys by law.

(4)
A credit union shall accept from the Department of Human Services or the Oregon
Health Authority, without additional requirements, a declaration under penalty
of perjury meeting the requirements of subsection (3) of this section. A
declaration submitted under this section must be signed by the declarant and
must include the following sentence immediately above the signature line of the
declarant: “I hereby declare under penalty of perjury that I am authorized by
the Department of Human Services or the Oregon Health Authority to make this
declaration, that the above statement is true to the best of my knowledge and
belief, and that I understand that it is subject to penalty for perjury.”

(5)
In the event the member died intestate without known heirs, an estate
administrator of the Department of State Lands appointed under ORS 113.235
shall be the affiant and shall receive the moneys as escheat property.

(6)
The credit union shall determine the relationship of the affiant or declarant
to the deceased member. However, payment of the moneys in good faith to the
affiant or declarant discharges and releases the transferor from any liability
or responsibility for the transfer in the same manner and with the same effect
as if the property had been transferred, delivered or paid to a personal
representative of the estate of the deceased member.

(7)
A probate proceeding is not necessary to establish the right of the surviving
spouse, Oregon Health Authority, Department of Human Services, surviving
children, surviving parents, surviving brothers and sisters or an estate
administrator of the Department of State Lands to withdraw the deposits upon
the filing of the affidavit or declaration. If a personal representative is
appointed in an estate where a withdrawal of deposits was made under this
section, the person withdrawing the deposits shall account for them to the
personal representative.

(8)
When a credit union transfers moneys under subsection (1) of this section, the
transferor may require the transferee to furnish the transferor with a written
indemnity agreement, indemnifying the transferor against loss for moneys paid
to the extent of the amount of the deposit.

(9)(a)
Moneys disbursed to the Department of Human Services under subsection (1) of
this section may be made payable only to the department.

(b)
Moneys disbursed to the Oregon Health Authority under subsection (1) of this
section may be made payable only to the authority.

723.468
Adverse claim to deposit; notice; restraining order or other process; indemnity
bond or letter of credit. (1) A credit union shall be obligated to recognize an
adverse claim to a deposit it holds only if the adverse claimant gives notice
to the credit union of its claim and:

(a)
Procures a restraining order, injunction or other appropriate process against
the credit union in an action wherein the person to whose credit the deposit
stands is made a party and served with summons; or

(b)
Delivers to the credit union in a form, and with sureties acceptable to the
credit union, a bond or an irrevocable letter of credit issued by a financial
institution, as defined in ORS 706.008, indemnifying the credit union from any
liability, damage or expenses on account of the payment of the adverse claim or
the dishonor of the check or other order of the person to whose credit the
deposit stands.

(2)
This section does not apply when the person in whose name the account is
carried is a fiduciary for the adverse claimant, and the affidavit of the
adverse claimant states the facts constituting the fiduciary relationship and
the facts showing reasonable cause of belief on the part of the claimant that
the fiduciary is about to misappropriate the deposit.

(3)
A credit union may, at its option, interplead a deposit that is subject to any
adverse claim. [1999 c.185 §22]

723.470
Checks drawn by agents presumed to be in authorized manner. If a person who
owns a share or deposit account subject to check authorizes another person as
agent to draw checks against the account, the credit union, in the absence of
written notice to the contrary, may presume that any check drawn by the agent
in the manner authorized by the terms and conditions of the account, including
checks drawn to the personal order of the agent, is drawn for a purpose
authorized by the principal and within the scope of the authority conferred
upon the agent. [1999 c.185 §23]

723.472
Checks of intoxicated or drugged persons. A credit union may refuse to pay
any check, draft or order drawn upon it when the officers or employees of the
credit union have reason to believe that the person signing or indorsing the instrument
was so under the influence of alcohol, drugs or controlled substances or that
the person was otherwise so incapacitated as to make it reasonably doubtful
whether the person was capable of transacting business at the time of signing
or indorsing the check, draft or order. [1999 c.185 §24]

723.474
Definitions for ORS 723.474 to 723.498. As used in ORS 723.474 to 723.498, unless
the context requires otherwise:

(1)
“Account” means a contract of deposit of funds between a member and a credit
union and includes a checking account, savings account, certificate of deposit
and share account.

(2)
“Beneficiary” means a person named in a trust account as one for whom a party
to the account is named as trustee.

(3)
“Joint account” means an account payable on request to one or more of two or
more parties whether or not mention is made of any right of survivorship.

(4)
“Multiple-party account” means a joint account, a P.O.D. account or a trust
account. “Multiple-party account” does not include:

(a)
Accounts established for the deposit of funds of a partnership, joint venture
or other association for business purposes; or

(b)
Accounts controlled by one or more persons as the duly authorized agent or
trustee for a corporation, unincorporated association, charitable or civic
organization, or a regular fiduciary or trust account where the relationship is
established other than by deposit agreement.

(5)
“Net contribution” of a party to a joint account means the sum of all deposits
made to the account by or for the party, less all withdrawals made by or for
the party that have not been paid to or applied to the use of any other party,
plus a pro rata share of any interest or dividends included in the current
balance. “Net contribution” includes any proceeds of deposit life insurance
added to the account by reason of the death of the party whose net contribution
is in question.

(6)
“Party” means a person who, by the terms of the multiple-party account, has a
present right, subject to request, to payment from a multiple-party account. A
P.O.D. payee or beneficiary of a trust account is a party only after the
account becomes payable to the payee or beneficiary by reason of the payee or
beneficiary surviving the original party or trustee. “Party” includes a
guardian, conservator, personal representative or assignee, including an
attaching creditor, of a party. “Party” also includes a person identified as a
trustee of an account, whether or not a beneficiary is named, but does not
include any named beneficiary unless the named beneficiary has a present right
of withdrawal.

(7)
“Payment” of sums on deposit includes withdrawal, payment on check or other
directive of a party, any pledge of sums on deposit by a party and any setoff,
deduction or other disposition of all or part of an account pursuant to a
pledge.

(8)
“P.O.D. account” means an account payable on request:

(a)
To one person during the lifetime of the person and upon the death of the
person to one or more P.O.D. payees; or

(b)
To one or more persons during their lifetimes and upon the death of all of them
to one or more P.O.D. payees.

(9)
“P.O.D. payee” means a person designated on a P.O.D. account as the person to
whom the account is payable on request after the death of one or more persons.

(10)
“Request” means a proper request for withdrawal, or a check or order for
payment, that complies with all conditions of the account, including special
requirements concerning necessary signatures and regulations of the credit
union. If the credit union conditions withdrawal or payment on advance notice,
for purposes of ORS 723.474 to 723.498, the request for withdrawal or payment
is treated as immediately effective and a notice of intent to withdraw is
treated as a request for withdrawal.

(11)
“Sums on deposit” means the balance payable on a multiple-party account
including interest, dividends and any deposit life insurance proceeds added to
the account by reason of the death of a party.

(12)
“Trust account” means an account in the name of one or more parties as trustee
for one or more beneficiaries where the relationship is established by the form
of the account and the deposit agreement with the credit union, and there is no
subject of the trust other than the sums on deposit in the account. It is not
essential that payment to the beneficiary be mentioned in the deposit
agreement. A trust account does not include a regular trust account under a
testamentary trust, a trust agreement that has significance apart from the
account, or a fiduciary account arising from a fiduciary relationship such as
attorney-client.

(13)
“Withdrawal” includes payment to a third person pursuant to check or other
directive of a party. [1999 c.185 §25]

723.476
Application of ORS 723.478, 723.480 and 723.482; liability and setoff rights of
credit unions.
The provisions of ORS 723.478, 723.480 and 723.482 concerning beneficial
ownership between parties or between parties and P.O.D. payees or beneficiaries
of multiple-party accounts are relevant only to controversies between those
persons and their creditors and other successors, and have no bearing on the
power of withdrawal of those persons as determined by the terms of account
contracts. The provisions of ORS 723.486 to 723.496 govern the liability of
credit unions that make payments pursuant thereto, and their setoff rights. [1999
c.185 §26]

723.478
Ownership of multiple-party accounts. (1) A joint account belongs, during the
lifetime of all parties, to the parties in proportion to the net contributions
by each party to the sums on deposit, unless there is clear and convincing
evidence of a different intent.

(2)
A P.O.D. account belongs to the original party during the lifetime of the party
and not to the P.O.D. payee or payees. If two or more persons are named as
original parties, during their lifetimes, rights between them are governed by
subsection (1) of this section.

(3)
Unless a contrary intent is manifested by the terms of the account or the
deposit agreement, or there is other clear and convincing evidence of an
irrevocable trust, a trust account belongs beneficially to the trustee during
the lifetime of the trustee. If two or more parties are named as trustees of
the account, during their lifetimes, beneficial rights between them are
governed by subsection (1) of this section. If there is an irrevocable trust,
the account belongs beneficially to the beneficiary. [1999 c.185 §27]

723.480
Multiple-party accounts; disposition of deposit upon death of party or trustee;
effect of will.
(1) Sums remaining on deposit at a credit union at the death of a party to a
joint account are rebuttably presumed to belong to the surviving party or
parties against the estate of the decedent. If there are two or more surviving
parties, their respective ownerships during their lifetimes shall be in proportion
to their previous ownership interests under ORS 723.478, augmented by an equal
share for each survivor of any interest the decedent may have owned in the
account immediately before death. The right of survivorship continues between
the surviving parties.

(2)
If the account is a P.O.D. account:

(a)
Upon the death of one of two or more original parties, the rights to any sums
remaining on deposit are governed by subsection (1) of this section.

(b)
Upon the death of the sole original party or the survivor of two or more
original parties, any sums remaining on deposit belong to the P.O.D. payee or
payees, if surviving, or to the survivor of them if one or more die before the
original party. If two or more P.O.D. payees survive, there is no right of survivorship
in the event of death of a P.O.D. payee thereafter unless the terms of the
account or deposit agreement expressly provide for survivorship between them.

(3)
If the account is a trust account:

(a)
Upon the death of one of two or more trustees, the rights to any sums remaining
on deposit are governed by subsection (1) of this section.

(b)
Upon the death of the sole trustee or the survivor of two or more trustees, any
sums remaining on deposit belong to the person or persons named as beneficiaries,
if surviving, or to the survivor of them if one or more die before the trustee,
unless there is clear and convincing evidence of a contrary intent. If two or
more beneficiaries survive, there is no right of survivorship in the event of
death of any beneficiary thereafter unless the terms of the account or deposit
agreement expressly provide for survivorship between them.

(4)
In other cases, the death of any party to a multiple-party account has no
effect on beneficial ownership of the account, other than to transfer the
rights of the decedent as part of the estate of the decedent.

(5)
A right of survivorship arising under this section or from the express terms of
the account, a beneficiary designation in a trust account or a P.O.D. payee
designation cannot be changed by will.

(6)
The rebuttable presumption under subsection (1) of this section may be overcome
by evidence establishing that:

(a)
The deceased party intended a different result; or

(b)
The deceased party lacked capacity when the joint account was established.

(7)
A credit union is not liable for distributing sums remaining on deposit at the
death of a party to a joint account to a surviving party or parties in
accordance with the account agreement unless, prior to distributing sums to a
surviving party or parties:

(a)
The credit union has received notice of an adverse claim under ORS 723.468; and

723.482
Rights of survivorship based on form of account; alteration of form of account. The provisions of
ORS 723.480 that apply to rights of survivorship are determined by the form of
the account at the time of death of a party. Subject to satisfaction of the
requirements of the credit union, the form of an account may be altered by a
written order given by a party to the credit union. The order must be signed by
the party, be received by the credit union during the party’s lifetime, and not
be countermanded by other written order of the same party during the lifetime
of the party. [1999 c.185 §29]

723.484
Transfers of moneys upon death of depositor or trustee is not testamentary
disposition.
Any transfers resulting from the application of ORS 723.480 are effective by
reason of the account contracts involved and application of ORS 723.480. The
transfers are not to be considered as testamentary or subject to administration
in the estate of a deceased party. [1999 c.185 §30]

723.486
Multiple party account; payment of deposit to one or more parties; credit union
not required to determine source or use of funds in account. Credit unions may
enter into multiple-party accounts to the same extent that they may enter into
single-party accounts. Any multiple-party account may be paid, on request, to
any one or more of the parties. For purposes of establishing net contributions
a credit union shall not be required to inquire about the source of funds
received for deposit to a multiple-party account, or to inquire about the
proposed application of any sum withdrawn from an account. [1999 c.185 §31]

723.488
Joint account; payment to any party to account; payment to others. Any sums in a
joint account may be paid, on request, to any party without regard to whether
any other party is incapacitated or deceased at the time the payment is
requested. Payment may not be made to the personal representative or heirs of a
deceased party unless:

(1)
Proof of death is presented to the credit union, showing that the decedent was
the last surviving party; or

(2)
There is no right of survivorship under ORS 723.480. [1999 c.185 §32]

723.490
P.O.D. account; payment to any original party; payment to others. Any P.O.D.
account may be paid, on request, to any original party to the account. Payment
may be made, on request, to the P.O.D. payee or to the personal representative
or heirs of a deceased P.O.D. payee upon presentation to the credit union of
proof of death showing that the P.O.D. payee survived all persons named as
original parties. Payment may be made to the personal representative or heirs
of a deceased original party if proof of death is presented to the credit union
showing that the decedent was the survivor of all other persons named on the
account either as an original party or as a P.O.D. payee. [1999 c.185 §33]

723.492
Trust account; payment to trustee; payment to others. Any trust account
may be paid, on request, to any trustee. Unless the credit union has received
written notice that the beneficiary has a vested interest not dependent upon
the beneficiary surviving the trustee, payment may be made to the personal
representative or heirs of a deceased trustee if proof of death is presented to
the credit union showing that the decedent survived all other persons named on
the account as either trustee or beneficiary. Payment may be made, on request,
to the beneficiary upon presentation to the credit union of proof of death
showing that the beneficiary or beneficiaries survived all persons named as
trustees. [1999 c.185 §34]

723.494
Discharge of credit union for payments made; conditions. Payment made
pursuant to ORS 723.486, 723.488, 723.490 or 723.492 discharges the credit
union from all claims for amounts paid, whether or not the payment is
consistent with the beneficial ownership of the account between parties, P.O.D.
payees or beneficiaries, or their successors. The protection given by this
section does not extend to payments made after a credit union has received
written notice from any party able to request present payment that states that
withdrawals in accordance with the terms of the account should not be
permitted. Unless the notice is withdrawn by the person giving it, the
successor of any deceased party must concur in any demand for withdrawal if the
credit union is to be protected under this section. No other notice or any
other information shown to have been available to a credit union shall affect
its right to the protection provided by this section. The protection provided
by this section shall have no bearing on the rights of parties in disputes between
themselves or their successors concerning the beneficial ownership of funds in
or withdrawn from multiple-party accounts. [1999 c.185 §35]

723.496
Right of credit union to setoff; amount. Without qualifying any other statutory or
common law right to setoff or lien, and subject to any contractual provision,
if a party to a multiple-party account is indebted to a credit union, the
credit union has a right to setoff against the account in which the party has
or had immediately before the death of the party a present right of withdrawal.
The amount of the account subject to setoff is that proportion to which the
debtor is, or was immediately before the death of the debtor, beneficially
entitled and, in the absence of proof of net contributions, to an equal share
with all parties having present rights of withdrawal. [1999 c.185 §36]

723.498
Designation of agent for account; powers of agent. Nothing in ORS
723.426, 723.432, 723.474, 723.476 or 723.478 shall preclude a party to an
account from adding the name of another person to the account with the
designation of “agent.” The agent shall have no present or future interest in
the sums on deposit in the account, but the credit union may honor requests for
payment from the accounts by the agent, unless the principal is deceased at the
time the payment is requested and the credit union has actual knowledge of the
death. Payments from the account by the credit union at the request of the
agent shall discharge the credit union from all claims for amounts so paid. [1999
c.185 §37]

LOANS

723.502
Purposes; terms.
A credit union may make loans to members of the credit union for such purpose
and upon such security and terms as the credit committee, credit manager or
loan officer approves. A person who is not a member of the credit union may be
a guarantor or coobligor on a credit union’s loan to a member of the credit
union. [1975 c.652 §52; 1981 c.412 §8; 2007 c.343 §7]

723.506
Application.
Every application for a loan shall be made in the form prescribed by the credit
committee, credit manager or loan officer. The application shall state the
security, if any offered. Each loan shall be evidenced by a written document. [1975
c.652 §53; 1991 c.635 §14]

723.512
Loan limit; exception. (1) A credit union may not make a loan to any member
in an aggregate amount that exceeds $100,000, or 15 percent of the credit union’s
equity, whichever is greater. In determining the amount of loans to be made to
a member, loans for which that member is a guarantor or surety must be
included, as well as loans to persons who are not individuals if the individual
member is a principal or owner of the person who is not an individual or the
loan is for that member’s benefit.

723.516
Installments.
A member may receive a loan in installments, or in one sum, and may pay the
whole or any part of the member’s loan on any day on which the office of the
credit union is open for business. [1975 c.652 §55]

723.520 [Repealed by 1959
c.106 §23]

723.522
Line of credit.
The credit committee, credit manager, or loan officer may approve in advance
upon their own motion or upon application by a member, a line of credit, and
advances may be granted to such member within the limit of such extension of
credit. Where a line of credit has been approved, no additional loan
applications are required as long as the aggregate obligation does not exceed
the limit of such extension of credit. [1975 c.652 §56; 1987 c.286 §8]

723.526
Other loan programs.
(1) Loans to credit union members may be shared with other credit unions,
corporations or financial organizations.

(2)
A credit union may participate in guaranteed loan programs of the federal
government, the State of Oregon or any other state.

(3)
A credit union may purchase the conditional sales contracts, notes and similar
instruments of its members.

(4)
A credit union may purchase the leases of its members if the leases satisfy the
requirements of ORS 723.152 (9). [1975 c.652 §57; 1999 c.185 §43]

723.532
Loans to credit union officials; waiver; rules. (1) For the
purposes of this section, “management team” means the president or chief
executive officer of a credit union or an individual who holds a position in a
credit union of vice president or higher who has policymaking authority or
authority to approve loans.

(2)
A credit union may make a loan to a director, a member of the credit union’s
management team, the chief credit officer or a member of the credit union’s
supervisory and credit committees if the credit union makes the loan under the
following conditions:

(a)
The loan complies with the provisions of this chapter that apply to loans to
other borrowers and is not on terms more favorable than terms extended to other
borrowers.

(b)(A)
Except as provided in subparagraph (B) of this paragraph, if the combined
aggregate amount of loans to an individual described in this subsection exceeds
five percent of the credit union’s equity or $100,000, whichever is less, the
board of directors must approve making the loans in excess of the specified
aggregate amount.

(B)
The aggregate amount of loans specified in subparagraph (A) of this paragraph
does not include a loan that is:

(i)
For an amount that is equal to or less than the conforming loan limit that the
Federal Housing Finance Agency specifies, or $400,000, whichever is greater;
and

(ii)
Secured by a first lien on the borrower’s principal residence.

(c)
The combined aggregate amount of loans to all individuals described in this
subsection may not exceed 10 percent of the credit union’s assets.

(d)
If a loan to a director, a member of the credit union’s management team, the
chief credit officer or a member of the credit union’s supervisory or credit
committee is not subject to approval by the board of directors under paragraph
(b) of this subsection, after the loan is approved, the loan must be reported
to the board of directors at the next meeting of the board of directors.

(3)(a)
Except as provided in paragraph (b) of this subsection, a director, officer or
committee member may not become a surety or guarantor for a loan or advance
made by the credit union unless the board of directors approves.

(b)
A director, officer or committee member may become a surety or guarantor for
the spouse or children of the director, officer or committee member without the
approval of the board of directors.

(4)
The Director of the Department of Consumer and Business Services may waive the
requirements of this section by rule or order at a credit union’s request. The
Director of the Department of Consumer and Business Services may establish by
rule a higher amount than the amount set in subsection (2)(b) of this section
and may specify by rule the type of loans to directors, officers or committee
members that the board of directors of the credit union must approve.

(5)
A director, a member of the credit union’s management team, the chief credit
officer or a member of the credit union’s supervisory or credit committee may
not participate in approving or disbursing a loan in which the director, member
of the credit union’s management team, chief credit officer or member of the
credit union’s supervisory or credit committee has a direct or indirect
financial interest. [1975 c.652 §58; 1985 c.206 §2; 1985 c.762 §98; 1987 c.286 §9;
1997 c.832 §7; 1999 c.185 §44; 2009 c.234 §8; 2011 c.327 §3]

723.536
Loans to nonmembers; personal liability. Any officer, director or member of a
committee of a credit union who knowingly permits a loan to be made or
participates in a loan to a nonmember of the credit union shall be primarily
liable to the credit union for the amount thus illegally loaned. The illegality
of such loan shall be no defense in any action by the credit union to recover
the amount loaned. [1975 c.652 §59]

723.540 [Repealed by 1975
c.652 §88]

723.550 [Amended by 1959
c.106 §22; repealed by 1975 c.652 §88]

723.560 [Repealed by 1975
c.652 §88]

INSURANCE
AND GROUP PURCHASING

723.572
Insurance for members. (1) A credit union may purchase or make available
life savings, loan protection and other forms of insurance for its members in
amounts related to their respective ages, shares, deposits or loan balances or
to any combination of them.

723.576
Liability insurance for director, officer, employee or agent. A credit union
may purchase and maintain insurance on behalf of any person who is or was a
director, officer, employee or agent of the credit union, or who is or was
serving at the request of the credit union as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise against any liability asserted against such person and incurred by
such person in any such capacity or arising out of such person’s status as
such, whether or not the credit union would have the power to indemnify such
person against such liability. [1975 c.652 §61]

723.582
Share and deposit insurance. (1) Each credit union shall secure
insurance on shares and deposits from the National Credit Union Administration
under the Federal Credit Union Act or its successor, or from any other insuring
organization that provides comparable coverages and is approved by the Director
of the Department of Consumer and Business Services. Any one share of a member,
as designated in the bylaws of the credit union, may be excluded from the
requirement for insurance.

(2)
The director may make available condition and examination reports to the
appropriate insuring organization and may accept any report of examination made
by such organization. The director may appoint the appropriate insuring
organization as liquidating agent of an insured credit union. [1975 c.652 §62;
1977 c.549 §1; 1985 c.801 §9; 1987 c.286 §10; 1999 c.185 §46]

723.586
Group purchasing.
A credit union may enter into cooperative marketing arrangements to facilitate
its members’ voluntary purchases of such goods and services as are in the
interest of improving economic and social conditions of the members. Said
investment shall not exceed one percent of the credit union’s assets.
Notwithstanding any other provision of law, the taxable income from such
activities which are conducted by the credit union shall be subject to tax
pursuant to ORS 317.920. [1975 c.652 §63; 1983 c.162 §56; 1999 c.185 §47]

INVESTMENTS

723.602
Investment of funds; rules. A credit union may invest funds not used in loans to
members in:

(1)
Securities, obligations or other instruments of or issued by or fully
guaranteed as to principal and interest by the United States or an agency of
the United States or in a trust or trusts established directly or collectively
in the securities, obligations or instruments described in this subsection.

(2)
Obligations of a state of the United States, the agencies or instrumentalities
of the federal government, the District of Columbia, the Commonwealth of Puerto
Rico and the several territories organized by Congress, or a political
subdivision of a state, district, commonwealth or territory identified in this
subsection.

(3)
Certificates of deposit or passbook type accounts issued by a state or national
bank, mutual savings bank or savings and loan association.

(4)
Loans to or in shares or deposits of other credit unions.

(5)
Stocks, membership units or other ownership interests in, or loans to, a
corporation, limited liability company or mutual association in an amount not
to exceed five percent of assets if:

(a)
The ownership, membership or loan, as applicable, is primarily confined to
credit unions or organizations of credit unions; and

(b)
The purposes for which the corporation, limited liability company or mutual
association is organized are primarily to service or otherwise assist credit
union operations.

(6)
Shares of a credit union cooperative society organized under the laws of this
state or of the laws of the United States in a total amount not exceeding one
percent of the shares, deposits and surplus of the credit union.

(7)
Loans to a national or state credit union association or corporation of which
the credit union is a member, except that the loans must be limited to not more
than five percent of the assets of the credit union.

723.631
Regular reserve; reserve for loan losses; rules. (1) A credit
union shall establish and maintain a regular reserve for contingencies. The
Director of the Department of Consumer and Business Services may adopt rules
prescribing:

(a)
Minimum net worth requirements for credit unions; and

(b)
Actions a credit union must take when the net worth of the credit union falls
below the applicable minimum net worth requirement.

723.636
Charges to regular reserve. (1) Subject to subsection (2) of this section, the
board of directors of a credit union may authorize losses to be charged to the
regular reserve after first depleting the balance of the undivided earnings
account and other appropriations of undivided earnings designated by the
management of the credit union or by the regulatory authorities.

(2)
An authorization may be made under subsection (1) of this section only if the
charge will not cause the net worth of the credit union to fall below any
minimum net worth requirement prescribed by the Director of the Department of
Consumer and Business Services under ORS 723.631. The authorization must state
the amount charged to the regular reserve and include an explanation of the
need for the charge.

(3)
Upon application of a credit union, the director may approve a charge to the
regular reserve that will cause the net worth of the credit union to fall below
any minimum net worth requirement prescribed by the director under ORS 723.631.
[1975 c.652 §66; 1981 c.192 §39; 1999 c.185 §49; 2005 c.95 §11]

723.642 [1975 c.652 §67;
1977 c.628 §4; repealed by 1981 c.192 §46]

723.646
Special reserves; purpose. (1) In addition to the regular reserve established
under ORS 723.631, special reserves to protect the interest of members shall be
established, as provided in this section:

(a)
When required by rule; or

(b)
When found by the board of directors of the credit union or by the Director of
the Department of Consumer and Business Services, or if the members’ accounts
are insured by the National Credit Union Administration, the Administrator of
the National Credit Union Administration, in any special case, to be necessary
for that purpose.

(2)
Special reserves belong to the credit union and shall be used to provide
liquidity for the credit union. A credit union may not pay regular or special
dividends from the special reserve. [1975 c.652 §68; 1981 c.192 §40; 1995 c.319
§4]

CHANGE
IN CORPORATE STATUS

723.672
Suspension; revocation of charter. (1) If it appears that any credit union
is bankrupt or insolvent, or that it has willfully violated any provision of
this chapter, or is operating in an unsafe or unsound manner, the Director of
the Department of Consumer and Business Services shall issue an order
temporarily suspending the credit union’s operations for not less than 30 nor
more than 60 days. The board of directors shall be given notice by registered
mail or by certified mail with return receipt of such suspension, and a list of
the specific violations of this chapter.

(2)
Upon receipt of the suspension notice, the credit union shall cease all
operations, except those authorized by the director. The board of directors
shall then file with the director a reply to the suspension notice, and may
request a hearing to present a plan of corrective actions proposed if it
desires to continue operations. The board may request that the credit union be
declared insolvent and a liquidating agent be appointed.

(3)
Upon receipt from the suspended credit union of evidence that the conditions
causing the order of suspension have been corrected, the director may revoke
the suspension notice and permit the credit union to resume normal operations.

(4)
If the director, after issuing notice of suspension and providing an
opportunity for a hearing, rejects the credit union’s plan to continue
operations, the director may then revoke the credit union’s charter, appoint a
liquidating agent and liquidate the credit union. The credit union may request
the appropriate court to stay execution of such action. Involuntary liquidation
may not be ordered prior to the conclusion of suspension procedures outlined in
this section.

(5)
If, within the suspension period, the credit union fails to answer the
suspension notice or request a hearing, the director may then revoke the credit
union’s charter, appoint a liquidating agent and liquidate the credit union. [1975
c.652 §69; 1985 c.762 §99; 1991 c.249 §68]

723.676
Liquidation. (1)
A credit union may elect to dissolve voluntarily and liquidate its affairs in
the manner prescribed in this section.

(2)
The board of directors shall adopt a resolution recommending the credit union
be dissolved voluntarily and directing that the question of liquidation be
submitted to the members.

(3)
Within 10 days after the board of directors decides to submit the question of
liquidation to the members, the president or chairperson of the board shall
notify the Director of the Department of Consumer and Business Services thereof
in writing setting forth the reasons for the proposed action. Within 10 days
after the members act on the question of liquidation, the president or
chairperson of the board shall notify the director in writing as to whether or
not the members approved the proposed liquidation.

(4)
As soon as the board of directors decides to submit the question of liquidation
to the members, payment on shares, withdrawal of shares, making any transfer of
shares to loans and interest, making investments of any kind and granting loans
shall be suspended pending action by members on the proposal to liquidate. On
approval by the members of such proposal, all such business transactions shall
be permanently discontinued. Necessary expenses of operation shall, however,
continue to be paid on authorization of the board of directors or liquidating
agent during the period of liquidation.

(5)
For a credit union to enter voluntary liquidation, approval by a majority of
the members in writing or by a two-thirds majority of the members present at a
regular or special meeting of the members is required. Where authorization for
liquidation is to be obtained at a meeting of the members, notice in writing
shall be given to each member by first class mail to the member’s last-known
address at least 10 days prior to such meeting.

(6)
A liquidating credit union shall continue in existence for the purpose of
discharging its debts, collecting and distributing its assets and doing all
acts required in order to wind up its business and may sue and be sued for the
purpose of enforcing such debts and obligations until its affairs are fully
adjusted.

(7)
The board of directors or the liquidating agent shall use the assets of the
credit union to pay: First, expenses incidental to liquidating including any
surety bond that may be required; and, second, any liability due nonmembers.
Assets then remaining shall be distributed to the members proportionately to the
shares and deposits held by each member as of the date dissolution was voted.

(8)
As soon as the board of directors or the liquidating agent determines that all
assets from which there is a reasonable expectancy of realization have been
liquidated and distributed as set forth in this section, they shall execute a
certificate of dissolution on a form prescribed by the director and file the
same, together with all pertinent books and records of the liquidating credit
union, with the director, whereupon such credit union shall be dissolved. [1975
c.652 §70; 1999 c.185 §50]

723.682
Merger; opposition to merger. (1) A credit union chartered in this
state may, with the approval of the Director of the Department of Consumer and
Business Services, merge with another credit union under the existing charter
of the other credit union pursuant to a plan that the majority of each board of
directors of each credit union joining in the merger agrees to and that is
approved by the affirmative vote of a majority of the members of the merging
credit union that vote on the merger.

(2)
After the directors agree to a plan and the members of the merging credit union
approve the plan, the president and secretary of the credit union shall execute
a certificate of merger, which shall set forth all of the following:

(a)
The time and place of the meeting of the board of directors at which the board
agreed to the plan.

(b)
The vote in favor of adopting the plan.

(c)
A copy of the resolution or other action by which the board agreed to the plan.

(d)
The time and place of the meeting of the members at which the members approved
the plan.

(e)
The vote by which the members approved the plan.

(3)
The certificate and a copy of the plan of merger must be forwarded to the
director, certified by the director and returned to the continuing credit union
within 30 days.

(4)
After the director returns the certificate, all property, property rights and
members’ interest of the merged credit union shall vest in the continuing
credit union without deed, indorsement or other instrument of transfer, and the
continuing credit union under whose charter the merger was effected assumes all
debts, obligations and liabilities of the merged credit union. The rights and
privileges of the members of the merged credit union remain intact.

(5)
This section permits a credit union chartered under the laws of another state
or of the United States to merge with a credit union chartered under the laws
of this state, and a credit union chartered under the laws of this state to
merge with a credit union chartered under the laws of another state or of the
United States, to the same extent that the laws of this state permit two or
more credit unions chartered under the laws of this state to merge.

(6)(a)
After the board of directors of a credit union that is chartered in this state
has approved a plan to merge with another credit union, if a member of the
credit union opposes the plan to merge and wishes to inform other members of
the credit union of the member’s opposition, the member may submit a proposed
statement of opposition to the credit union and may ask the credit union to
disseminate the statement of opposition to the other members.

(b)
If the credit union maintains on the Internet and publicizes to the credit
union’s members a public forum for communications concerning the plan to merge
or other issues related to the credit union, the credit union, within 14
calendar days after receiving the proposed statement of opposition from the
member and subject to paragraph (e) of this subsection, shall publish the
statement of opposition on the public forum.

(c)
If the credit union does not make a public forum available on the Internet and
if the credit union received the member’s proposed statement of opposition at
least 28 days before the date on which the members of the credit union are to
vote on the plan to merge, subject to paragraph (e) of this subsection, the
credit union shall:

(A)
Notify the member, within seven days after receiving the statement of opposition,
of:

(i)
Any limit, which may not be less than 500 words, that the credit union may
impose on the length of the statement of opposition; and

(ii)
The estimated reasonable cost to reproduce and mail the statement of opposition
as a stand-alone document or the estimated cost to include the statement of
opposition in any informational or persuasive material concerning the plan to
merge that the credit union disseminates to credit union members. The credit
union’s estimate of the cost of including the statement of opposition in the
credit union’s material may not exceed two cents multiplied by the number of
the credit union’s members.

(B)
Reproduce and mail the statement of opposition to the credit union’s members or
include the statement of opposition in the credit union’s informational or
persuasive materials concerning the plan to merge, within 10 days after
receiving payment of the cost estimated in subparagraph (A)(ii) of this
paragraph, if the member agrees to the limit the credit union imposes on the
length of the statement of opposition and pays the cost at least 14 days before
the date on which the members of the credit union are to vote on the plan to
merge.

(d)
For purposes of paragraph (c) of this subsection, informational and persuasive
material concerning the plan to merge does not include a notice of the meeting
at which the credit union’s members are to consider the plan to merge, a
summary of the merger plan or other items that state or federal law requires
the credit union to send to credit union members.

(e)(A)
The credit union shall notify the credit union member within seven days after
receiving the proposed statement of opposition if the credit union declines to
disseminate the statement of opposition because the statement of opposition:

(i)
Is false or misleading with respect to a material fact at the time and in light
of the circumstances in which the statement is made;

(ii)
Omits a material fact that is necessary for the statement of fact not to be
false or misleading;

(iii)
Relates to a personal claim or grievance or solicits personal gain by or
business advantage for any party;

(iv)
Is not sufficiently related to the credit union’s business or affairs;

(v)
Impugns, directly or indirectly, a person’s character, integrity or personal
reputation or without an expressed factual basis charges a person with illegal,
improper or immoral conduct; or

(vi)
Impugns the stability or soundness of the credit union.

(B)
The credit union may decline to disseminate the proposed statement of
opposition if the credit union member does not agree to the limits the credit
union imposes on the length of the statement of opposition or fails within the
time limits set in paragraph (c) of this subsection to pay the cost of mailing
the statement or including the statement with the credit union’s informational
or persuasive material concerning the plan to merge.

(C)
The credit union may not decline to disseminate the statement of opposition for
reasons other than the reasons identified in subparagraph (A) or (B) of this
paragraph.

(f)(A)
A credit union member may appeal to the director the credit union’s decision
under paragraph (e)(A) of this subsection not to disseminate the credit union
member’s statement of opposition. An appeal under this paragraph is not a
contested case, as defined in ORS 183.310, and a party to the appeal is not
entitled to notice and an opportunity for a hearing under ORS 183.413 to
183.470. As part of the appeal, the credit union member shall provide the
director with:

(i)
The proposed statement of opposition;

(ii)
A statement of reasons for disagreeing with the credit union’s decision under
paragraph (e)(A) of this subsection not to disseminate the statement of
opposition; and

(iii)
The credit union member’s name, address and telephone number or other contact
information.

(B)
Before issuing an order under this paragraph, the director shall request from
the credit union a statement of reasons for declining to disseminate the
proposed statement of opposition. The director shall consider the credit union
member’s proposed statement of opposition and statement of reasons and the
credit union’s statement of reasons and shall arrive at an independent
determination as to whether the credit union correctly declined to disseminate
the credit union member’s proposed statement for the reasons identified in
paragraph (e)(A) of this subsection.

(C)
The director by order shall uphold the credit union’s decision under paragraph
(e)(A) of this subsection or shall require the credit union to disseminate the
credit union member’s proposed statement of opposition in accordance with the
provisions of this subsection. The director’s order is subject to appeal only
as provided in ORS 183.484. [1975 c.652 §71; 1999 c.185 §51; 2011 c.327 §5]

723.686
Conversion of charter. (1) A credit union chartered under the laws of this
state may be converted to a credit union chartered under the laws of the United
States, subject to the approval of the National Credit Union Administration.

(2)
A credit union chartered under the laws of the United States may convert to a
credit union chartered under the laws of this state subject to approval of the
Director of the Department of Consumer and Business Services. [1975 c.652 §72;
1987 c.286 §12]

CENTRAL
CREDIT UNIONS

723.702
Organization; name.
Any central credit union may be organized and operated under this chapter with
all the rights and powers of any credit union organized under this chapter,
except those granted to a corporate central credit union under ORS 723.730, and
shall be subject to all provisions of this chapter not inconsistent with ORS
723.702 to 723.730. Such a credit union shall use the term “central” in its
official name. [1975 c.652 §73; 1985 c.762 §100; 1999 c.185 §52]

(1)
Credit unions organized and operating under this chapter or under any other
credit union act.

(2)
Officers, directors, committee members and employees of such credit unions;
officials and employees of any association of credit unions; and employees of
federal or state governmental agencies responsible for the supervision of
credit unions in this state.

(3)
Organizations and associations of those persons or organizations enumerated in
subsection (1) or (2) of this section.

(4)
Employees of an employer with insufficient numbers to form or conduct the
affairs of a credit union that would provide substantially similar services and
facilities.

(5)
Persons in the field of membership of liquidated credit unions or of credit
unions that have entered into or are about to enter into voluntary or
involuntary liquidation proceedings.

(6)
Members of the immediate families of all members qualified above. [1975 c.652 §74;
1985 c.762 §101; 1999 c.185 §53]

723.712
Voting representative. Each credit union becoming a member of such central
credit union may designate one person to be its voting representative in the
central credit union, which person shall be designated by the board of
directors of the member credit union. Such voting representative shall be
eligible to hold office in the central credit union as if such person were a
member of the central credit union. [1975 c.652 §75]

723.716
Additional rights and powers. (1) A central credit union shall have all
of the rights and powers of any other credit union organized under this chapter
and the additional rights and powers specified in this section, notwithstanding
any limitations or restrictions found elsewhere in this chapter.

(2)
A central credit union may make loans to other credit unions, purchase shares
of and make deposits in other credit unions and, with the approval of the
director, obtain or acquire the assets and liabilities of any credit union
operating in this state that enters into liquidation.

(3)
A central credit union may invest in and grant loans to associations of credit
unions, central funds of credit unions or organizations chartered to provide
service to credit unions.

(4)
A central credit union may borrow money from any source. It may also issue
debentures pursuant to a plan approved by the director. The debentures must be
subordinate to the deposits and shares of the credit union. [1975 c.652 §76;
1985 c.762 §102]

CORPORATE
CENTRAL CREDIT UNION

723.730
Corporate central credit union; membership; rights and powers; rules. Membership in a
corporate central credit union shall be limited to credit unions organized
under federal law or under the laws of states listed in the bylaws of the
corporate central credit union, and to subsidiaries of any such credit unions,
associations of any such credit unions and affiliates of such associations. A
corporate central credit union shall have all the powers, rights and
obligations imposed upon or granted central credit unions under this chapter,
except:

(1)
It shall be exempt from the regular reserve requirements of ORS 723.631, but
shall be required to establish and maintain a minimum capital to assets ratio
as set by the Director of the Department of Consumer and Business Services by
rule.

(2)
It shall be exempt from the bond or letter of credit requirements of ORS
723.122, but shall be required to obtain and maintain a fidelity bond in
accordance with any rules adopted by the director.

(3)
It may buy and sell any form of marketable debt obligations of domestic
corporations or of federal, state or local government units in accordance with
an investment plan approved by the director prior to the purchase or sale of
the obligation.

(4)
A corporate central credit union may make loans or establish lines of credit to
a member without regard to the limit set in ORS 723.512. Notwithstanding ORS
723.502 or any other provision of law limiting allowable interest on a loan, a
corporate central credit union and a member may agree in writing on the rate of
interest that shall be charged on such loans.

723.752
Application of tax statutes to credit unions. Any credit union subject to this
chapter shall be deemed an institution for savings within the meaning of the
law that exempts such institutions from taxation. No law, except as stated in
this section, that taxes corporations in any form, or the shares thereof or the
accumulations therein, shall apply to credit unions doing business in
accordance with this chapter unless the credit unions are specifically named in
the law. [1975 c.652 §77; 1985 c.762 §103; 2009 c.541 §42]

723.756
Stock transfer taxes.
The shares of any credit union shall not be subject to stock transfer taxes,
either when issued or when transferred from one member to another. [1975 c.652 §78]

723.762
Participation in government programs. The participation by a credit union in
any government program providing unemployment, Social Security, old age pension
or other benefits shall not be deemed a waiver of the taxation exemption hereby
granted. [1975 c.652 §79]

723.802 [1975 c.652 §80;
repealed by 1985 c.762 §196]

MISCELLANEOUS

723.806
Notice to law enforcement officers of violation of Oregon Credit Union Act;
exceptions.
If the Director of the Department of Consumer and Business Services has reason
to believe that a person has violated any provision of the Oregon Credit Union
Act for which criminal prosecution is provided, the director shall give the
information relative to the violation to the federal, state or local law
enforcement agency having jurisdiction of the violation. This section does not
apply, however, if an official of the credit union has reported the information
to the proper law enforcement officer under ORS 723.338. [1975 c.652 §81; 1979
c.88 §36]

723.812
Actions; assistance.
The Attorney General shall conduct all actions begun by the Director of the
Department of Consumer and Business Services under authority of the Oregon
Credit Union Act, and may require the assistance of the district attorney of
the district in which the action is conducted. [1975 c.652 §82]

(a)
With intent to deceive, falsify any book of account, report, statement, record
or other document of a credit union whether by alteration, false entry,
omission or otherwise.

(b)
Sign, issue, publish or transmit to a governmental office any book of account,
report, statement, record or other document which the person knows to be false.

(c)
By means of deceit, obtain a signature to a writing which is a subject of
forgery.

(d)
With intent to deceive, destroy any credit union book of account, report,
statement, record or other document.

(2)
No person shall maliciously and knowingly spread false reports about the
management or finances of any credit union. [1975 c.652 §83]

723.818
Giving false document, statement or report prohibited. A person may not
knowingly give or cause to be given to the Director of the Department of
Consumer and Business Services any document or any oral or written statement or
report that is false in any material respect, in the course of any
investigation or examination by the director under this chapter. [1987 c.215 §7]

723.822
Cease and desist orders; contents; effective date; removal or suspension. (1) The Director
of the Department of Consumer and Business Services may issue and serve upon a
credit union or a director, officer, committee member, employee or agent of a
credit union an order to cease and desist from a practice or a violation as
follows:

(a)
The director may issue an order to cease and desist from an unsafe or unsound
practice when the director has reasonable cause to believe that the person to
whom the order is directed is engaging, has engaged or is about to engage in an
unsafe or unsound practice in conducting the business of the credit union.

(b)
The director may issue an order to cease and desist from a violation when the
director has reasonable cause to believe that the person to whom the order is
directed is violating, has violated or is about to violate a law, rule or
regulation of this state or the United States, an order of the director or a
provision of the articles of incorporation or bylaws of the credit union.

(2)
An order under subsection (1) of this section must include the following:

(a)
A statement of the facts that constitute the practice or violation.

(b)
A provision that requires the person named in the order to cease and desist
from the practice or violation. The provision may be mandatory or otherwise.

(c)
The effective date of the order.

(d)
A notice to the person named in the order of the right to a contested case hearing
under ORS chapter 183.

(3)
If the practice or violation specified in the order or the continuation of the
practice or violation is likely to prejudice the interest of the members of a
credit union, the director may issue an order effective immediately or at a
later date. In all other cases, the order is effective 30 days after the date
of the order unless the person named in the order requests a hearing on the
order.

(4)
An order under this section remains in effect until a court order or the director
withdraws the order.

(5)
If an individual named in an order under this section fails to comply with the
order, the director may issue an order that removes or suspends the individual
from the office or position the individual holds. The removal or suspension is
in addition to any penalty provided by ORS 723.995 for failure to comply with
an order issued under this section. [1975 c.544 §56; 1977 c.135 §46; 1987 c.215
§8; 1987 c.286 §13; 2009 c.541 §42a]

723.830
Regulation of services performed for credit union. A credit union
may not contract for any of the services described in this section to be
performed for the credit union unless both the credit union and the person
performing the services agree to be subject to regulation and examination by
the Director of the Department of Consumer and Business Services to the same
extent as if the services were performed by the credit union. This section
applies to the following services:

(1)
Check and deposit sorting and posting.

(2)
Computation and posting of interest and other credits and charges.

(3)
Any other bookkeeping, accounting or similar functions performed for a credit
union. [1987 c.650 §9; 1997 c.832 §9]

723.832
Application to credit unions existing on September 13, 1975. The provisions of
the Oregon Credit Union Act shall apply to the fullest extent permitted by the
laws and Constitutions of the United States and of the State of Oregon, to all
existing credit unions organized under any general Act of this state. [1975
c.652 §85]

723.836
Effect of amendment or repeal of Oregon Credit Union Act. (1) The Oregon
Credit Union Act may be amended, repealed or modified, but such amendment,
repeal or modification shall not take away or impair any remedy for any
liability which shall have been previously incurred.

(2)
The repeal of a previous law by section 88, chapter 652, Oregon Laws 1975,
shall not affect any right accrued or established, or any liability or penalty
incurred, under the provisions of such previous law, prior to the repeal
thereof. [1975 c.652 §§86,87; 1985 c.762 §105]

723.840
Limitation on personal liability for good faith act or omission or exercise of
judgment or discretion; reliance on information or reports; causes of action. (1) A person is
not personally liable for an act or omission the person does or fails to do in
good faith and in compliance with a statute, rule or order of the Director of
the Department of Consumer and Business Services under this chapter regardless
of whether the statute, rule or order is later amended, rescinded or determined
to be invalid by judicial or other authority.

(2)
A director or officer of a credit union is not personally liable to the credit
union or to members of the credit union for damages that result from the
director’s or officer’s exercising judgment or discretion in connection with
the director’s or officer’s duties or responsibilities or from the director’s
or officer’s act or omission in rendering service to the credit union, except
to the extent that, in exercising judgment or discretion or in rendering
service to the credit union, the director or officer fails to act in good
faith, with the care an ordinarily prudent person in a like position would
exercise under similar circumstances and in a manner that the director or
officer reasonably believes is in the best interests of the credit union.

(3)(a)
A director, in discharging the director’s duties, may rely on information,
opinions, reports or statements, including financial statements and other
financial data that any of the following persons prepare or present:

(A)
An officer or employee of the credit union that the director reasonably
believes is competent and reliable with respect to the matters the officer or
employee prepares or presents;

(B)
Legal counsel, public accountants or other persons with respect to matters that
the director reasonably believes are within the counsel’s, accountant’s or
other person’s professional or expert competence; or

(C)
A committee of the board of directors of which the director is not a member if
the director reasonably believes that the committee merits the director’s
confidence.

(b)
A director does not act in good faith, with due care or in a manner that the
director reasonably believes is in the interests of the credit union if the
director has knowledge concerning a matter that makes the director’s reliance
on the information, opinions, reports, statements or data described in
paragraph (a) of this subsection unwarranted.

(4)
This section does not bar a cause of action against the credit union or change
any liability of the credit union that arises out of an act or omission of a
director, officer or other who is exempt from liability for negligence under
this section. [1999 c.185 §38; 2013 c.480 §7]

723.844
Procedures for opening safe deposit box after death of person who was sole lessee
or last surviving lessee of box. (1) This section applies to the safe
deposit box of any person who is the sole lessee or last surviving lessee of
the box and who has died.

(2)
Subject to ORS 114.537, upon being furnished with a certified copy of the decedent’s
death record or other evidence of death satisfactory to the credit union, the
credit union within which the box is located shall cause or permit the box to
be opened and the contents of the box examined at the request of an individual
who furnishes an affidavit stating:

(a)
That the individual believes the box may contain the will of the decedent, a
trust instrument creating a trust of which the decedent was a trustor or a
trustee at the time of the decedent’s death, documents pertaining to the disposition
of the remains of the decedent, documents pertaining to property of the estate
of the decedent or property of the estate of the decedent; and

(b)
That the individual is an interested person and wishes to open the box to
conduct a will search or trust instrument search, obtain documents relating to
the disposition of the decedent’s remains or inventory the contents of the box
or remove property of the estate of the decedent pursuant to a small estate
affidavit filed under ORS 114.515.

(3)
For the purpose of this section, “interested person” means any of the
following:

(a)
A person named as personal representative of the decedent in a purported will
of the decedent;

(b)
The surviving spouse or any heir of the decedent;

(c)
A person who was serving as the court-appointed guardian or conservator of the
decedent or as trustee for the decedent immediately prior to the decedent’s
death;

(d)
A person named as successor trustee in a purported trust instrument creating a
trust of which the decedent was a trustor or a trustee at the time of the
decedent’s death;

(e)
A person designated by the decedent in a writing that is acceptable to the
credit union and is filed with it prior to the decedent’s death;

(f)
A person who immediately prior to the death of the decedent had the right of
access to the box as an agent of the decedent under a durable power of
attorney;

(g)
If there are no heirs of the decedent, an estate administrator of the
Department of State Lands appointed under ORS 113.235; or

(h)
A person who is authorized to file an affidavit under ORS 114.515.

(4)
If the box is opened for the purpose of conducting a will search, the credit
union shall remove any document that appears to be a will, make a true and
correct copy of it and deliver the original will to a person designated in the
will to serve as the decedent’s personal representative, or if no such person
is designated or the credit union cannot, despite reasonable efforts, determine
the whereabouts of such person, the credit union shall retain the will or
deliver it to a court having jurisdiction of the estate of the decedent. A copy
of the will shall be retained in the box. At the request of the interested
person, a copy of the will, together with copies of any documents pertaining to
the disposition of the remains of the decedent, may be given to the interested
person.

(5)
If the box is opened for the purpose of conducting a trust instrument search,
the credit union shall remove any document that appears to be a trust
instrument creating a trust of which the decedent was a trustor or trustee at
the time of the decedent’s death, make a true and correct copy of it and
deliver the original trust instrument to a person designated in the trust
instrument to serve as the successor trustee on the death of the decedent. If
no such person is designated or the credit union cannot, despite reasonable
efforts, determine the whereabouts of such person, the credit union shall
retain the trust instrument. A copy of the trust instrument shall be retained in
the box. At the request of any interested person, a copy of the trust
instrument may be given to the interested person.

(6)
If the box is opened for the purpose of obtaining documents pertaining to the
disposition of the decedent’s remains, the credit union shall comply with
subsection (4) or (5) of this section with respect to any will or trust
instrument of the decedent found in the box, and may in its discretion either:

(a)
Make and retain in the box a copy of any documents pertaining to the disposition
of the remains of the decedent and tender the original documents to the
interested person; or

(b)
Provide a copy of any documents pertaining to the disposition of the remains of
the decedent to the interested person and retain the original documents in the
box.

(7)
If the box is opened for the purpose of making an inventory of its contents,
the credit union shall comply with subsection (4) or (5) of this section with
respect to any will or trust instrument of the decedent that is found in the
box, and shall cause the inventory to be made. The inventory must be attested
to by a representative of the credit union and may be attested to by the
interested person, if the interested person is present when the inventory is
made. The credit union shall retain the original inventory in the box, and
shall furnish a copy of the inventory to the interested person upon request.

(8)
If the interested person is an affiant of a small estate affidavit filed under
ORS 114.515 and delivers a certified copy of the affidavit in the manner
provided by ORS 114.535, the credit union shall provide to the affiant access
to the decedent’s property. The credit union shall comply with subsection (4)
or (5) of this section if a will or trust instrument of the decedent is found
in the box. Subject to ORS 114.537, the credit union shall allow the affiant to
take possession of the personal property in the box.

(9)
The credit union may presume the truth of any statement contained in the
affidavit required to be furnished under this section and ORS 114.535, and when
acting in reliance upon such an affidavit, the credit union is discharged as if
it had dealt with the personal representative of the decedent. The credit union
is not responsible for the adequacy of the description of any property included
in an inventory of the contents of a box, or for the conversion of the property
in connection with actions performed under this section, except for conversion
by intentional acts of the credit union or its employees, directors, officers or
agents. If the credit union is not satisfied that the requirements of this
section have been satisfied, the credit union may decline to open the box.

(10)
If the interested person or affiant does not furnish the key needed to open the
box, and the credit union must incur expense in gaining entry to the box, the
credit union may require that the interested person or affiant pay the expense
of opening the box.

(11)
Any examination of the contents of a box under this section shall be conducted
in the presence of at least one employee of the credit union. [1999 c.506 §11;
2003 c.395 §25; 2011 c.422 §5; 2013 c.366 §83]

723.995
Civil penalties.
(1) The Director of the Department of Consumer and Business Services may assess
any person who violates any provision of this chapter or any rule or final
order issued under this chapter a civil penalty of not more than $2,000 for
each violation or $10,000 in the aggregate for all violations within any
three-month period. In the case of an individual agent or employee of a credit
union, the civil penalty shall be not more than $1,000 for each violation or
$5,000 in the aggregate for all violations within any three-month period. The
director shall count each day that a violation continues as a separate violation.

(2)
In addition to the civil penalty provided by subsection (1) of this section, a
credit union or a director, officer, committee member, agent or employee of a
credit union who violates any provision of this chapter, or any rule or final
order issued under this chapter, may be assessed a civil penalty in an amount
determined by the director but not to exceed the amount by which the person
profited as a result of the violation.

(3)
Civil penalties under this section shall be imposed as provided in ORS 183.745.

(4)
If a civil penalty is assessed against a director, officer, committee member,
agent or employee of a credit union, unless the director provides otherwise,
the director, officer, committee member, agent or employee shall forfeit the penalty
and the penalty shall not be paid either directly or indirectly by the credit
union.

(5)
All moneys collected under this section shall be paid to the State Treasurer
and credited as provided in ORS 705.145. [Formerly 723.826]